Santa Fe Production sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 36,400, a selling price of $28, variable cost per unit of $10, and total fixed costs of $384,000. If Santa Fe’s unit sales are 300 units less than anticipated, its break-even point will: Multiple Choice   increase by $18 per unit sold.   decrease by $18 per unit sold.   increase by $10 per unit sold.   decrease by $10 per unit sold.   not change.

Managerial Accounting
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Author:Carl Warren, Ph.d. Cma William B. Tayler
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Chapter6: Cost-volume-profit Analysis
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MC Qu. 7-70 Santa Fe Production sells a single product to

Santa Fe Production sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 36,400, a selling price of $28, variable cost per unit of $10, and total fixed costs of $384,000. If Santa Fe’s unit sales are 300 units less than anticipated, its break-even point will:

Multiple Choice
  •  
    increase by $18 per unit sold.
  •  
    decrease by $18 per unit sold.
  •  
    increase by $10 per unit sold.
  •  
    decrease by $10 per unit sold.
  •  
    not change.
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