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Clark Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $6 of variable costs to make. During April,

Clark Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $6 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $4.20 per unit for a total of $4,200 for the month. If variable costs increase by 10%, what happens to the break-even level of units per month for Clark Company?

A.

It is 10% higher than the original break-even point.

B.

It increases about 13 units.

C.

It increases about 30 units.

D.

It depends on the number of units the company expects to produce and sell.

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