Question: A product sells for $30 per unit and has variable costs of $18 per unit. The fixed costs are $720,000. If the variable costs per

A product sells for $30 per unit and has variable costs of $18 per unit. The fixed costs are $720,000. If the variable costs per unit were to decrease by $4 per unit, fixed costs increase by $200,000, and the selling price does not change, break-even point in units would:

A) Increase by 20,000.

B) Equal 6,000.

C) Increase by 6,000.

D) Decrease by 2,500.

E) Not change.

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