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The following information was provided by Ring The Bells, Ltd. for the month of June: Current sales price: $28.50 per unit Current variable costs per
The following information was provided by Ring The Bells, Ltd. for the month of June: Current sales price: $28.50 per unit Current variable costs per unit: $11.95 Current monthly fixed costs: $331,210 Current sales volume: 22,400 units A manager at the firm projects the following changes will occur for the upcoming month of July: Sales price will decrease by $0.60 per unit Variable costs will decrease by $0.15 per unit Monthly fixed costs will increase by $1,200 per month Sales volume will increase by 660 units If all of these changes occur, by how many units would the firm's break-even point change? a. Increase by 634 units b. Increase by 2,667 units c. Decrease by 634 units d. Decrease by 2,667 units
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