Can You Hear Me? Now, LLC manufactures and sells a single mobile telephone. Can You Hear is considering upgrading its current manufacturing facilities with more modern equipment. Cost data for the current facility and the upgraded facility at an expected activity level of

4000

phones is as? follows:

	Current	Upgraded
Total Variable Manufacturing Costs	?$144,000	?$108,000
Total Fixed Manufacturing Costs	?$43,000	?$160,000
Total Variable? SG&A Costs	?$10,000	?$10,000
Total Fixed? SG&A Costs	?$12,000	?$12,000

The sales price for each phone is? $125.

What is the unit breakeven point in the? company's current? facility?

nothing

?(enter commas if? appropriate)What is the unit breakeven point if the company upgrades its? facility?

nothing

?(enter commas if? appropriate)At what level of unit sales is the company economically indifferent between remaining in its current facility and upgrading its? facility?

nothing

?(enter commas if? appropriate)

If the company expects to sell 1 phone above the indifference point calculated? above, it would be more profitable for the company to

A.

remain in the existing facility.

B.

upgrade to the new facility.