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Mosaic Tile Company has estimated the following amounts for its next fiscal year:
Total fixed costs $833,000
Sales price per unit $42
Variable costs per unit $25
Problem 1: What will happen to the breakeven point (in units) if Mosaic can reduce fixed costs by $23,000 (Round your answer up to the nearest whole unit.)
A. The breakeven point will decrease by 1353 units.
B. The breakeven point will increase by 548 units.
C. The breakeven point will increase by 920 units.
D. The breakeven point will decrease by 920 units.
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