A company is using the breakeven chart to evaluate the decision of buying new machinery that will increase its fixed costs by $200,000 Below is the information of the company Variable cost per unit = $60 Total revenue = $1,360,000 Units sold = 8,500 units Total Cost = $710,000

a. Total fixed costs after increase of $200,000 is:

b. Total variable cost of the company:

c. New total costs after addition of $200,000

d. Breakeven point is equal to (after increase of fixed costs):

e. What is the margin of safety at an output level of 5,000 and the new TC after addition of $200,000? (Profit = Total revenue - Total costs)

f. If the company decided to lease a more advanced machine instead of buying the older one, the fixed cost will increase by $300,000 but the variable cost will decrease to be $40 per unit. Calculate the new break-even point (approximate)