Waterway Company produces flash drives for computers, which it sells for $20 each. Each flash drive incurs $6 of variable costs during production. During April, 1280 drives were sold. Fixed costs for April were $4.20 per unit for a total of $5376 for the month. If variable costs decrease by 10%, what happens to the break-even level of units per month for Waterway Company? O It is 10% higher than the original break-even point. O It decreases by approximately 38 units. O It decreases by approximately 16 units. O It depends on the number of units the company expects to produce and sell.

Vaterway Company produces flash drives for computers, which it sells for $20 each. Each flash drive incurs $6 of variable costs during production. During April, 1280 drives were sold. Fixed costs for April were $4.20 per unit for a total of $5376 for the month. If variable costs decrease by 10%, what happens to the break-even level of units per month for Waterway Company? It is 10% higher than the original break-even point. It decrease by approximately 38 units. It decreases by approximately 16 units. It depends on the number of units the company expects to produce and sell