A small company, L'toile Ite, produces a single product. Its cost structure is 50% fixed costs and 50% variable costs, with a volume of 15,000 units produced and sold per month. At this volume of activity, it generates an operating profit of $150,000

for total monthly sales of $1,050,000. Management is studying a project to robotize a workshop. The implementation of this new equipment would increase fixed costs by 50%, but also decrease variable costs by 50%.

A/ What effect does this project have on the breakeven point?