Sequoah Company Sells Its Product for $60 and Has Variable

question 225

Multiple Choice

Sequoah Company sells its product for $60 and has variable costs of $31 per unit.The total fixed costs are $35,000.What will be the effect on the breakeven point in units if variable costs increase by $6 due to an increase in the cost of direct materials?

• A) It will increase by 315 units.
• B) It will decrease by 315 units.
• C) It will decrease by 207 units.
• D) It will increase by 207 units.

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