Fleming Company Sells a Product for $50 Per Unit

Multiple Choice

Fleming Company sells a product for $50 per unit. The fixed costs are $525,000 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 $125,000 and variable costs will be 50% of the selling price. The new break-even point in units is:

A) 26,250.
B) 26,000.
C) 25,750.
D) 21,000.