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The following information pertains to MacKenzie Corp.: Sales (21,600 units) $ 900,000 Fixed costs $ 200,000 Breakeven sales point, in dollars $ 700,000 If the

The following information pertains to MacKenzie Corp.:

Sales (21,600 units) $ 900,000
Fixed costs $ 200,000
Breakeven sales point, in dollars $ 700,000

If the sales price per unit were to decrease by 5% and variable expenses were to increase by $2.00 per unit, which of the following is true? (Round per unit values to the nearest whole dollar amount.)

Multiple Choice

  • The new breakeven point is $1,000,000.

  • The new variable expenses are $28 per unit.

  • The new selling price is $38 per unit.

  • The new breakeven point is $24,875 units.

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