Calpo Co. buys and sells a product that has a variable cost per unit of $18. Calpos fixed costs amount to $48,000. The product sells for $22 each. As a result of competition Calpo has been forced to establish a target sales price of $21 per unit. If Calpo implements the pricing strategy, the break-even point will

increase by $16,000.

decrease by $72,000.

decrease from 16,000 units to 12,000.

increase from 12,000 units to 16,000.