Jacob Inc Has Fixed Costs of $240,000, the Unit Selling Price

question 43

Multiple Choice

Jacob Inc. has fixed costs of $240,000, the unit selling price is $32, and the unit variable costs are $20. What are the old and new break-even sales (units) if the unit selling price increases by $4?

• A) 7,500 units and 6,667 units
• B) 20,000 units and 30,000 units
• C) 20,000 units and 15,000 units
• D) 12,000 units and 15,000 units