Company X Has Variable Costs Per Unit of $20,fixed Costs

question 138

Multiple Choice

Company X has variable costs per unit of $20,fixed costs of $300,000,and a break-even point in units of 60,000 units.If the sales price per unit decreases by $2 and the variable cost per unit decreases by $2,what would happen to the break-even point?

• A) Break-even point increases.
• B) Break-even point in dollars decreases.
• C) Break-even point stays the same.
• D) Break-even point in dollars decreases and break-even point in units stays the same.

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