A product sells for $30 per unit and has variable costs of $18 per unit.The fixed costs are $720,000.If the variable costs per unit were to decrease to $15 per unit,fixed costs increase to $900,000,and the selling price does not change,break-even point in units would:
A)Increase by 20,000.
B)Equal 6,000.
C)Increase by 6,000.
D)Decrease by 20,000.
E)Not changE.Current break-even point in units = $720,000/($30 - $18)= 60,000 units

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The Answer of A product sells for $30 per unit and has variable costs of $18 per unit.The fixed costs are $720,000.If the variable costs per unit were to decrease to $15 per unit,fixed costs increase to $900,000,and the selling price does not change,break-even point in units would:
A)Increase by 20,000.
B)Equal 6,000.
C)Increase by 6,000.
D)Decrease by 20,000.
E)Not changE.Current break-even point in units = $720,000/($30 - $18)= 60,000 units

A Product Sells for $30 Per Unit and Has Variable