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Pear, Inc. produces keyboards for computers, which it sells for $40 each. Each keyboard costs $12 of variable costs to make. During May, 1,000 keyboards
Pear, Inc. produces keyboards for computers, which it sells for $40 each. Each keyboard costs $12 of variable costs to make. During May, 1,000 keyboards were sold. Fixed costs were $11,200 for the month. If variable costs decreased by 10%, what happens to the break-even level of units per month for Pear? It decreases by about 40 units It is 10% higher than the original break-even point. It decreases by about 16 units. It depends on the number of units the company expects to produce and sell None of the above
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