Can You Hear MeNow, 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 4,000 phones is asfollows:

Current Upgraded

Total Variable Manufacturing Costs$144,000

$108,000

Total Fixed Manufacturing Costs $43,000

$160,000

Total VariableSG&A Costs $10,000

$10,000

Total FixedSG&A Costs $12,000

$12,000

The sales price for each phone is$125.

What is the unit breakeven point in thecompany's currentfacility?

What is the unit breakeven point if the company upgrades itsfacility?

At what level of unit sales is the company economically indifferent between remaining in its current facility and upgrading itsfacility?

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

A)REMAIN IN THE SAME

B)UPGRADE