David from Problem 16 is now concerned as the market demand does not look very promising, and

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David from Problem 16 is now concerned as the market demand does not look very promising, and he may not be able to sell more than the breakeven volume. Therefore, instead of buying brandnew equipment, he plans on buying used equipment for $20,000 to reduce his fixed cost. Since the equipment is secondhand, it forces his employees to work at a slower pace, thus increasing the variable cost per toy to $20. Will these changes reduce his breakeven point?

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