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Highway 55 Studios has budgeted the following amounts for its next fiscal year: Total fixed expenses $1,400,000 Selling price per unit $60 Variable expenses per

Highway 55 Studios has budgeted the following amounts for its next fiscal year:

Total fixed expenses

$1,400,000

Selling price per unit

$60

Variable expenses per unit

$20

If Highway 55 Studios can reduce fixed expenses by $43,750, by how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units?

A.$20.00

B.$21.25

C.$41.25

D.$ 18.75

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