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Assume Hull Company Has the Following Information Available If Fixed Costs Increase by $200,000,what Is the Break-Even Point

Question 67

Multiple Choice

Assume Hull Company has the following information available:
Selling price per unit $100Variable cost per unit $45 Fixed costs per year$400,000Expected sales per year (units)  20,000\begin{array} { l } \text {Selling price per unit }&\$100\\ \text {Variable cost per unit }&\$45\\ \text { Fixed costs per year}&\$400,000\\ \text {Expected sales per year (units) }&20,000\\\end{array}

If fixed costs increase by $200,000,what is the break-even point in units?


A) 6,667
B) 10,000
C) 12,000
D) 13,000

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