Bolger and Co. manufactures large gaskets for the turbine industry. Bolger's per unit sales price and variable costs for the current year are as follows. Sales price per unit $300

Variable costs per unit 210

Bolger's total fixed costs aggregate $360,000. As Bolger's labor agreement is expiring at the end of the year, management is concerned about the effect a new agreement will have on its unit breakeven point. The controller performed a sensitivity analysis to ascertain the estimated effect of a $10 per unit direct labor increase and a $10,000 reduction in fixed costs. Based on these data, it was determined that the break-even point would

A. increase by 375 units. B. decrease by 125 units. C. increase by 500 units. D. decrease by 1,000 units.

I was wondering if you could explain the work on how you solve this answer?