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Bonita Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $10 of variable costs to make. During April,
Bonita Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $10 of variable costs to make. During April, 1000 drives were sold. Fixed costs for April were $9 per unit for a total of $9000 for the month. If variable costs decrease by 20%, what happens to the break-even level of units per month for Bonita Company?
| It is 20% higher than the original break-even point. |
| It decreases about 150 units. |
| It decreases about 180 units. |
| It depends on the number of units the company expects to produce and sell. |
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