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Shelton, Inc. manufactures and sells guitar strings. In this past year, they sold 150,000 feet...

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Accounting

Shelton, Inc. manufactures and sells guitar strings. In this past year, they sold 150,000 feet of guitar strings at $ 10 / foot. On average, they incurred $2.75 of variable costs per foot of guitar strings and incurred $60,000 of fixed costs every month. They pay income tax of 25% annually. They are trying to project profit in the coming year. If the income tax rises from 25% to 35%, the break-even point in units will:

Select one:

a. Increase

b. Decrease

c. Remain Constant

d. Cannot Determine

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