In 2016, Carow Sold 3,000 Units at $500 Each

question 30

Multiple Choice

In 2016, Carow sold 3,000 units at $500 each.Variable expenses were $250 per unit, and fixed expenses were $500,000.The same selling price is expected for 2017.Carow is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%.What is Carow's break-even point in units for 2017?

• A)2,000
• B)2,400
• C)2,500
• D)3,000

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