A firm gives the following details for one of its products. Selling price: $100 Variable cost per unit: $40 Fixed costs: $21 600 Break-even point: 360 units If the firm alters its production method, contribution will rise by 10% and fixed costs will rise by 5%. What effect would this have on the break-even point?
- Adecrease by 16 units
- Bdecrease by 18 units
- Cincrease by 16 units
- Dincrease by 18 units