question archive Concord Company produces flash drives for computers, which it sells for $20 each
Concord Company produces flash drives for computers, which it sells for $20 each
Subject:AccountingPrice: Bought3
Concord Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $10 of variable costs to make. During April, 2100 drives were sold. Fixed costs for April were $3 per unit for a total of $6300 for the month. If variable costs decrease by 20%, what happens to the break-even level of units per month for Concord Company?
1)It is 20% higher than the original B/E point
2)It decreases about 105 units
3)It decreases about 126 units
4)It depends on the # units the company expects to produce and sell.
