Answer
A 10% increase in fixed costs would cause break even point (in units) to reduce. Therefore, Break Even point (in units) would be worked out as follows;
BeP (Units) = Fixed Costs (Revised) / Contribution (Margin Per Unit).
Hence;
Work Step by Step
Revised Fixed Costs = $ 900,000 \times 1.10 = 990,000$
Contribution margin (per unit) = 0.5 [Sales Price] - 0.3 [Variable Costs] = 0.2
