Tixed cost per unit 9. JTC Corporation makes a product with a variable cost of $35 per unit and sells the product of $60 a unit. The total fixed costs are $26,000. What will be the effect on the breakeven point in units it variable cost increases by $5 a unit due to an increase in the cost of direct materials? A. It will increase by 260 units B. It will decrease by 260 unit C. It will decrease by 176 units D. It will increase by 176 units 10. Barrett Corporation has provided the following information on production of 10,000 units a month: Sales Revenue/Unit $8.50 Variable costs/Unit $5.25 Fixed Costs $22,000 The company believes that the volume will go up to 12,000 units if the company reduces its sales price to $7.50. How would this change affect operating income? A. It will increase by $5500 B. It will increase by $10,500 C. It will decrease by $5500 D. It will decrease by $10,500