What is the company break-even point in units

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Question - Splurge Electronics sells homework machines for $80 each. Variable costs per unit are $45 and total fixed costs are $43,750. Splurge is considering the purchase of new equipment that would increase fixed costs to $55,000, but decrease the variable costs per unit by $5. At that level, Splurge Electronics expects it can sell 1,500 units next year. What is the company's break-even point in units if it purchases the new equipment, assuming the selling price remains constant?

A. 1,250 units

B. 734 units

C. 2,469 units

D. 1,375 units

Reference no: EM132096364

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