Fleming Company Sells a Product for $50 Per Unit

question 196

Multiple Choice

Fleming Company sells a product for $50 per unit. The fixed costs are $525,000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $125,000 and variable costs will be 50% of the selling price. The new break-even point in units is:

• A) 26,250.
• B) 26,000.
• C) 25,750.
• D) 21,000.

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