A product sells for $30 per unit and has variable costs of $17.50 per unit....

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Accounting

A product sells for $30 per unit and has variable costs of $17.50 per unit. The fixed costs are $775,000. If the variable costs per unit were to decrease to $15.10 per unit, fixed costs increase to $923,800, and the selling price does not change, break-even point in units would:

Multiple Choice

  • Equal 6,000.

  • Increase by 4,960.

  • Decrease by 20,575.

  • Not change.

  • Increase by 20,575.

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