1. Shawn Penn & Pencil Set, Inc. has fixed costs of $80,000. Its products currently sells for $5 per unit and has variable costs of $2.50 per unit. Mr. Bic the head of manufacturing, proposes to buy new equipment that will cost $400,000 and drive up the fixed costs to $120,000. Although the price will remain at $5.00 per unit, the increase in automation will reduce costs per unit by $2.00. As a result of Bic's suggestion, will the breakeven point go up or down? Compute the necessary numbers