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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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