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Keene, Inc. produces flash drives for computers, which it sells for $20 each. Each flash drive costs $6 of variable costs to make. During March, 1,000 drives were sold. Fixed costs for March were $4.20 per unit for a total of $4,200 for the month. If variable costs decrease by 5%, what happens to the break-even level of units per month for Keene?
Stuck.
a.It decreases about 15 units.
b. It depends on the number of units the company expects to produce and sell.
c. It is 5% higher than the original break-even point.
d. It decreases about 6 units.
Stuck.
a.It decreases about 15 units.
b. It depends on the number of units the company expects to produce and sell.
c. It is 5% higher than the original break-even point.
d. It decreases about 6 units.
Accounting. Keene, Inc. produces flash drives for computers?
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