Fixed cost Break-even sales Profit Selling price per unit $4,000 $20,000 $1,000 $20 Among the given options, determine new break-even sales if selling price is reduced by 10%. a. $18,000 b. $20,000 c. $40,000 d. $36.000 For the year 2018, a company provides the following information: Amount 4,000 30,000 Description Budgeted output Budgeted raw materials to be used in pounds) Budgeted raw materials price per pound Budgeted labor rate per hour Budgeted labor hours $0.20 $15.00 2,000 Actual output Actual raw materials used in pounds) Actual raw materials price per pound Actual labor rate per hour Actual labor hours 4,200 32,000 $0.18 $14.50 2,050 Compute the labor rate variance. a. The labor rate variance is $1,025(Favorable). b. The labor rate variance is $1,025(Unfavorable). c. The labor rate variance is $1,000(Favorable). d. The labor rate variance is $1,000(Unfavorable)