Cleason Sells a Single Product at $14 Per Unit

Multiple Choice

Cleason sells a single product at $14 per unit. The firm's most recent income statement revealed unit sales of 80,000, variable costs of $800,000, and fixed costs of $560,000. Management believes that a $3 drop in selling price will boost unit sales volume by 20%. Which of the following correctly depicts how these two changes will affect the company's break-even point?

A) Choice A
B) Choice B
C) Choice C
D) Choice D
E) Choice E