Current Attempt in Progress

Kane, Inc. produces flash drives for computers, which it sells for $$20$ each. Each flash drive costs $$6$ of variable costs to make. During March, $1,000$ drives were sold. Fixed costs for March were $$5\mathrm{.}60$ per unit for a total of $$5,600$ for the month. If variable costs decrease by $10\%,$ what will happen to the break$-$even level of units per month for Kane?

It is $10\%$ higher than the original break$-$even point in sales units.

It decreases about $16$ units.

It decreases about $40$ units.

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