If Fixed Costs Are $240,000, the Unit Selling Price Is

question 61

Multiple Choice

If fixed costs are $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

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