Brown Company Produces Flash Drives for Computers, Which It Sells

Multiple Choice

Brown Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $6 of variable costs to make. During March, 1,000 drives were sold. Fixed costs for March were $4.20 per unit for a total of $4,200 for the month. If variable costs decrease by 10%, what happens to the break-even level of units per month for Brown Company?

A) It is 10% higher than the original break-even point.
B) It decreases about 12 units.
C) It decreases about 30 units.
D) It depends on the number of units the company expects to produce and sell.