Gitli Company Sells Its Product for $60 and Has Variable

question 112

Multiple Choice

Gitli Company sells its product for $60 and has variable cost of $35 per unit.The total fixed costs are $26,000.What will be the effect on the breakeven point in units if variable cost increases by $5 due to an increase in the cost of direct materials? (Round your answer up to the nearest whole unit.)

• A) It will increase by 260 units.
• B) It will decrease by 260 units.
• C) It will decrease by 176 units.
• D) It will increase by 176 units.

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