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Bernard Company produces flash drives for computers, which it sells for $20 each. Variable costs are $8 per flash drive. During March, 1,000 drives were
Bernard Company produces flash drives for computers, which it sells for $20 each. Variable costs are $8 per flash drive. During March, 1,000 drives were sold. Fixed costs for March were $4.90 per unit for a total of $4,900 for the month. If variable costs decrease by 10%, what happens to the break-even level of units per month for Bernard Company?
a) it 10% higher than the orginal break even point b) it decreases about 14 units c) it decreases about 35 units d) it depends on the number of units the company expects to produce and sell
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