Al Fain Inc. has fixed costs of $40,000. Its product currently sells for $2.5 per unit and has variable costs of $1.25 per unit. Mr. Raashid, the head of manufacturing, proposes to buy new equipment that will cost $200,000 and drive up fixed costs to $60,000. Although the price will remain at $2.5 per unit, the increased automation will reduce costs per unit to $1.00.

As a result of Rashidssuggestion, will the break-even point go up or down?

Compute the details.