Franklin Producers sells its core product for $8 per unit and has variable costs of $6 per unit.Total fixed costs are $28,000.Suppose variable costs increase by 20% due to an increase in the cost of direct materials.What will be the effect on the breakeven point in units?

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C)
Sales $8.00
Less Variable expenses 6.00
Contribution Margin $2.00
Fixed expense $28,000/ $2.00 CM = 14,000 BE units
Sales $8.00
Less Variable expenses 7.20
Contribution Margin $ 0.80
Fixed expense $28,000/ $0.80 CM = 35,000 BE units

Franklin Producers Sells Its Core Product for $8 Per Unit