Answer
This question tests your understanding about the effect of changes in cost behavior when more than one variable change. Students should pay attention to work out the "revised" Sales Price and Fixed Costs to find out the new break even point (in units) as follows
Work Step by Step
Revised sales price 0.5 per unit [current] * 1.10 [10% increase] = 0.55
Revised Fixed Costs (900,000 current + 20,000 increase) = 920,000
