Gall Manufacturing Sells a Product for $50 Per Unit

Multiple Choice

Gall Manufacturing sells a product for $50 per unit.The fixed costs are $735,000 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 $175,000 and variable costs will be 50% of the selling price.The new break-even point in units is:

A) 36,750.
B) 36,400.
C) 36,050.
D) 29,400.