Find how much can variable expenses per unit increase

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Nittany, Inc. provides the following information related to its sole product.

Selling price per unit: $79

Variable costs per unit: $55

Total fixed costs: $180,000

Question 1: If? Nittany, Inc. can reduce fixed expenses by? $60,000, but the company wishes to maintain the break-even volume implied above (when fixed costs were $180,000), by how much can variable expenses per unit increase before the company no longer makes profits?

Group of answer choices

Option 1: $10.00

Option 2: $10.50

Option 3: $5.50

Option 4: $8.00

Reference no: EM132602928

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