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Evans Company Has Estimated the Following Amounts for Its Next

Question 58

Multiple Choice

Evans Company has estimated the following amounts for its next fiscal year:
 Total fixed expenses $834,500 Sale price per unit 41 Variable expenses per unit 28\begin{array} { | l | l | } \hline \text { Total fixed expenses } & \$ 834,500 \\\hline \text { Sale price per unit } & 41 \\\hline \text { Variable expenses per unit } & 28 \\\hline\end{array}
What will happen to the breakeven point (in units) if Evans can reduce fixed expenses by $23,500?


A) The breakeven point will decrease by 840 units.
B) The breakeven point will decrease by 574 units.
C) The breakeven point will decrease by 1808 units.
D) The breakeven point will increase by 574 units.

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