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The following information was provided by Ring The Bells, Ltd. for the month of June: Current sales price: $125.00 per unit Current variable costs per

The following information was provided by Ring The Bells, Ltd. for the month of June:

Current sales price: $125.00 per unit

Current variable costs per unit: $72.75

Current monthly fixed costs: $297,350

Current sales volume: 8,000 units

A manager at the firm projects the following changes will occur for the upcoming month of July:

Sales price will increase by $0.25 per unit

Variable costs will increase by $1.15 per unit

Monthly fixed costs will increase by $2,080 per month

Sales volume will increase by 780 units

If all of these changes occur, by how many units would the firms break-even point change?

a.

Decrease by 2,312 units

b.

Increase by 141 units

c.

Increase by 2,312 units

d.

Decrease by 141 units

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