Answer:
The break even level of units per month fall by 16 units.
Step-by-step explanation:
The current breakeven units per month are,
Break even in units = 5600 / (20 - 6)
Break even in units-March = 400 Units
The fixed costs remain constant in the short run to a certain activity level so assuming that the fixed costs will remain $5600.
The new variable costs will be 6 * 0.9 = $5.4
Assuming everything else remains constant,
The new break even in units per month = 5600 / (20 - 5.4)
New break even in units = 383.56 rounded off to 384 units
As a result of decrease in the variable cost per units, the new break even point becomes 16 units less than the previous one.