The breakeven sales volume of the Tuck Co. is 800,000 units. If the variable cost per unit increases by $1.50 and the selling price per unit increases by $2 next year, then the new breakeven point will be:

Question

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The breakeven point will be lower because the variable cost per unit has increased by $1.50, which means that the company will need to sell more units to cover its costs.

The Breakeven Sales Volume of the Tuck Co