In 2019, Carow Sold 3,000 Units at $500 Each

Multiple Choice

In 2019, Carow sold 3,000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $500,000. The same selling price is expected for 2020. Carow is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is Carow's break-even point in units for 2020?

A) 2,000
B) 2,400
C) 2,500
D) 3,000