Answer (B) is correct . The breakeven point equals fixed costs divided by the contribution margin per unit. The new total for fixed costs is $241,500 ($210,000 + $31,500), and the contribution margin per unit is still $3. The breakeven point is thus 80,500 units ($241,500 ¡Â $3).Answer (A) is incorrect because Fixed costs should be divided by the contribution margin, not the unit variable cost.
Answer (C) is incorrect because Selling and administrative costs are reflected in the contribution margin.
Answer (D) is incorrect because Total costs of $941,500 divided by selling price of $10 results in 94,150 units.
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If fixed costs increased $31,500 with no other cost or revenue factors changing, the breakeven sales in units is
