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Lightfoot Company sells its product for $55 per unit and has variable costs of $30 per unit. Total fixed costs are $25,000. Suppose variable costs
Lightfoot Company sells its product for $55 per unit and has variable costs of $30 per unit. Total fixed costs are $25,000. Suppose variable costs increase by 10%due to an increase in the cost of direct materials. What will be the effect on the breakeven point in units?
A. Increase from 758 units to 1,000 units
B. Increase from 1,000 units to 1,136 units
C. Decrease from 1,000 units to 758 units
D. Decrease from 1,000 units to 864 units
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