Question: Benson Company produces flash drives for computers which have variable costs of $10 per flash drive to produce. Each flash drive sells for $20 each.

Benson Company produces flash drives for computers which have variable costs of $10 per flash drive to produce. Each flash drive sells for $20 each. During the current month, 1,000 flash drives were sold. Fixed costs for the current month were $4,500. If variable costs increase by 10%, what happens to the breakeven level in units for the month for Benson Company?

Benson Company produces flash drives for computers which have variable costs of

It depends on the number of units the company expects to produce and sell.

It is 10% higher than the original breakeven point.

It is 10% lower than the original breakeven point.

It increases by 50 units.

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