The information below is given for a business: Fixed costs in total: $\$15000$ Variable cost: $\$12$ for each unit Selling price: $\$20$ per unit Break-even point: $1875$ units The business plans to cut the break-even point to $1500$ units. Which strategy would not succeed in reaching the target break-even level?
- Aincreasing the selling price to $\$22$ per unit
- Breducing fixed costs to $\$12750$ and reducing variable cost to $\$11.50$ per unit
- Creducing fixed costs to $\$12800$
- Dreducing variable costs to $\$10$ per unit