Keene, Inc

question 22

Multiple Choice

Keene, Inc.produces flash drives for computers, which it sells for $20 each.Each flash drive costs $6 of variable costs to make.During March, 1,000 drives were sold.Fixed costs for March were $4.90 per unit for a total of $4,900 for the month.If variable costs decrease by 10%, what happens to the break-even level of units per month for Keene?

• A)It is 10% higher than the original break-even point.
• B)It decreases about 14 units.
• C)It decreases about 35 units.
• D)It depends on the number of units the company expects to produce and sell.

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Definitions:

Victorian Period

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A specialized agency of the United Nations responsible for international public health.

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