Bloom Company LLP located in Osh Kosh Wisconson manufactures and sells 4,000 units of a product that has a contribution margin of $5 per unit. The LLP sells the product for a sales price of $20 per unit. Fixed costs are $20,000. The firm has recently invested in new technology and expects the variable cost per unit to fall to $12 per unit. The investment is expected to increase fixed costs by $15,000. After the new investment is made, how many units must be sold to breakeven? (Do not round intermediate calculations.)

Multiple Choice

• 5,500 units

• 2,500 units

• 7,000 units

• 4,375 units