Due to a technical breakthrough, the fixed costs for a firm drop by 25%. Prior to this breakthrough,

Due to a technical breakthrough, the fixed costs for a firm drop by 25%. Prior to this breakthrough, fixed costs were $100,000 and unit contribution margin was and remains at $5.00. The new amount of break-even units will be:
a.25,000.
b.20,000.
c.15,000.
d.10,000.

 

Solution