Solved

Drenning Timber Products Has Estimated the Following Amounts for Its

Question 11

Multiple Choice

Drenning Timber Products has estimated the following amounts for its next fiscal year:  Total fixed expenses $834,500 Sale price per unit 41 Variable expenses per unit 30\begin{array} { | l | r | } \hline \text { Total fixed expenses } & \$ 834,500 \\\hline \text { Sale price per unit } & 41 \\\hline \text { Variable expenses per unit } & 30 \\\hline\end{array} What will happen to the breakeven point (in units) if Drenning can reduce fixed expenses by $22,500?


A) The breakeven point will decrease by 2,046 units.
B) The breakeven point will decrease by 549 units.
C) The breakeven point will decrease by 750 units.
D) The breakeven point will increase by 549 units.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions