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Cartman Enterprises management has budgeted the following amounts for its next fiscal year: Total fixed expenses $550,000 Selling price per unit $25 Variable expenses per unit $15 If Cartman Enterprises can reduce fixed expenses by $16,000, how will breakeven sales in units be affected? A) Increase by 400 units B) Increase by 1,600 units C) Decrease by 400 units D) Decrease by 1,600 units
Cartman Enterprises management has budgeted the following amounts for its next fiscal year:
|
Total fixed expenses |
$550,000 |
|
Selling price per unit |
$25 |
|
Variable expenses per unit |
$15 |
If Cartman Enterprises can reduce fixed expenses by $16,000, how will breakeven sales in units be affected?
A) Increase by 400 units
B) Increase by 1,600 units
C) Decrease by 400 units
D) Decrease by 1,600 units
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