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Sunland Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $10 of variable costs to make. During April,
Sunland Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $10 of variable costs to make. During April, 2500 drives were sold. Fixed costs for April were $6 per unit for a total of $15000 for the month. If variable costs decrease by 20%, what happens to the break-even level of units per month for Sunland Company? It is 20% higher than the original break-even point. It decreases about 250 units. It decreases about 300 units. It depends on the number of units the company expects to produce and sell
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