Gall Manufacturing Sells a Product for $50 Per Unit

Multiple Choice

Gall Manufacturing sells a product for $50 per unit. The fixed costs are $840000 and the variable costs are 60% of the selling price. As a result of new automated equipment it is anticipated that fixed costs will increase by $200000 and variable costs will be 50% of the selling price. The new break-even point in units is:

A) 42000.
B) 41600.
C) 41200.
D) 33600.