Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions