The Manhattan Company Sells Its One and Only Product for $89.00

Multiple Choice

The Manhattan Company sells its one and only product for $89.00 per unit.Variable costs per unit amount to $63.50,and total fixed costs are $3,697,500.If Manhattan increases its total fixed costs by $267,500 it can reduce variable costs by $5.00 per unit.How will this affect the breakeven point in units?

A) The breakeven point will increase 48,415 units
B) The breakeven point will decrease 15,000 units
C) The breakeven point will increase 22,317 units
D) The breakeven point will decrease 32,540 units