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What are the breakeven point sales in units

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Question - A financial manager at BPO Manufacturing Corporation is conducting sensitivity analysis to determine the relationships between costs, prices, and profits for Product 575. The manager's goal is to reduce the breakeven point for Product 575. If fixed costs are $250,000, the unit selling price is $20, and the unit variable costs are $16. What are the breakeven point (BEP) sales in units if the variable costs are decreased by $2 per unit?

A. 62,500 units

B. 41,667 units

C. 12,500 units

D. 17,857 units

Reference no: EM133148591

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