Evans Company has estimated the following amounts for its next fiscal year:

Evans Company has estimated the following amounts for its next fiscal year:

Total fixed expenses

$832,500

Sale price per unit

40

Variable expenses per unit

25

What will happen to the breakeven point (in units) if Evans can reduce fixed expenses by $22,500?

The breakeven point will decrease by 1,500 units.

The breakeven point will decrease by 562 units.

The breakeven point will decrease by 900 units.

The breakeven point will increase by 562 units.