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The fixed costs are 525000 and the variable costs are 60 of

Question - Fleming Company sells a product for $50 per unit. The fixed costs are $525,000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $125,000 and variable costs will be 50% of the selling price. The new break-even point in units is:

a. 26,250.

b. 26,000.

c. 25,750.

d. 21,000.

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Accounting Basics: The fixed costs are 525000 and the variable costs are 60 of

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