A Bag Manufacturing Company Proposed a Selling Price of $80

Multiple Choice

A bag manufacturing company proposed a selling price of $80 per bag for their new range of bags. Fixed costs are $10,000 and variable costs are $40 per bag. At this point their break even point was 250 units. What will be the breakeven point if the variable costs can be brought down to $30?

A) 150 units
B) 350 units
C) 300 units
D) 200 units
E) 100 units