The new break-even point in units is:

HH Aaron Company is planning to sell Product X for $80 per unit. Variable costs are $50 a unit and fixed costs are $ 150,000. What must total sales be in order to break even?     800,000     500,000     400,000     900,000

A4

Supersonic Tire Company makes a special kind of racing tire. Variable costs are $210 per​ unit, and fixed costs are $42,000 per month. Supersonic sells 400 units per month at a sales price of $320. If the quality of the tire is​ upgraded, the company believes it can increase the price to $350. If​ so, the variable cost will increase to $220 per​ unit, and the fixed costs will rise by 20​%. If Supersonic decides to​ upgrade, how will operating income be​ affected?     A. Operating income will increase by $20.   B. Operating income will decrease by $400.   C. Operating income will decrease by $12,000.   D. Operating income will increase by $12,000.