Xerox Company Has the Following Information Available If Variable Costs Increase to $65 Per Unit,what Is the

question 48

Multiple Choice

Xerox Company has the following information available:
$\begin{array} { l } \text {Selling price per unit }&\$100\\ \text {Variable cost per unit }&\$45\\ \text { Fixed costs per year}&\$420,000\\ \text {Expected sales per year (units) }&20,000\\\end{array}$

If variable costs increase to $65 per unit,what is the break-even point in units?

• A) 12,000
• B) 13,000
• C) 20,000
• D) none of the above

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