Lightfoot Company sells its product for $55 and has variable costs of $30 per unit. The total fixed costs are $25,000. What will be the effect on the breakeven point in units if variable costs...

Lightfoot Company sells its product for $55 and has variable costs of $30 per unit. The total fixed costs are $25,000. What will be the effect on the breakeven point in units if variable costs increase by $5 due to an increase in the cost of direct materials?

.

1. A) It will decrease by 250 units.


2. B) It will increase by 250 units


3. C) It will decrease by 167 units.


4. D) It will increase by 167 units.