Question: A product sells for $30 per unit and has variable costs of $16.75 per unit. The fixed costs are $861,250. If the variable costs per

A product sells for $30 per unit and has variable costs of $16.75 per unit. The fixed costs are $861,250. If the variable costs per unit were to decrease to $15.25 per unit, fixed costs increase to $958,750, and the selling price does not change, break-even point in units would:

Multiple Choice

  • Not change.

  • Decrease by 21,425.

  • Increase by 21,425.

  • Equal 6,000.

  • Increase by 3,250.

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