Due to a technical breakthrough, the fixed costs for a firm drop by 25%. Prior to this breakthrough, - 3836

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Due to a technical breakthrough, the fixed costs for a firm drop by 25%. Prior to this breakthrough, fixed costs were $100,000 and unit contribution margin was and remains at $5.00. The new amount of break-even units will be:

a.25,000.

b.20,000.

c.15,000.

d.10,000.

 
Solution Description

Due to a technical breakthrough, the fixed costs for a firm drop by 25%. Prior to this breakthrough, fixed costs were $100,000 and unit contributi