Evans Company has estimated the following amounts for its next fiscal year: $$\begin{array} { | l | r | }
\hline \text { Total fixed expenses } & \$ 832,500 \
\hline \text { Sale price per unit } & 40 \
\hline \text { Variable expenses per unit } & 25 \
\hline
\end{array}$$ What will happen to the breakeven point (in units) if Evans can reduce fixed expenses by $22,500?

Question

Evans Company has estimated the following amounts for its next fiscal year: $$\begin{array} { | l | r | } 
\hline \text { Total fixed expenses } & \$ 832,500 \
\hline \text { Sale price per unit } & 40 \
\hline \text { Variable expenses per unit } & 25 \
\hline
\end{array}$$ What will happen to the breakeven point (in units) if Evans can reduce fixed expenses by $22,500?

Quizplus · Accepted Answer

The Answer of Evans Company has estimated the following amounts for its next fiscal year: $$\begin{array} { | l | r | } 
\hline \text { Total fixed expenses } & \$ 832,500 \
\hline \text { Sale price per unit } & 40 \
\hline \text { Variable expenses per unit } & 25 \
\hline
\end{array}$$ What will happen to the breakeven point (in units) if Evans can reduce fixed expenses by $22,500?

Evans Company Has Estimated the Following Amounts for Its Next