Question

Fixed costs for a product are $60,000. The product itself sells for $4.00 and it costs $1.00 to make each product. How will the break-even point for the product change if the variable cost per unit goes up to $1.50?

A) The break-even point will increase by 4000.

B) The break-even point will increase by 24,000.

C) The break-even point will decrease by 4000.

D) The break-even point will increase by 20,000.

Answer

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