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 6,000.
B) Not change.
C) Equal 6,000.
D) Decrease by 20,000.
E) Increase by 20,000.

Question

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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 6,000.
B) Not change.
C) Equal 6,000.
D) Decrease by 20,000.
E) Increase by 20,000.

A Product Sells for $30 Per Unit and Has Variable