Diagnostics is a medical large picks up specimens from clinics on testing laboratory that services a four-county region. East Easton runs a van that and hospitals and takes them to the Easton laboratory where various tests are conducted. Easton currently has a large chemical blood analysis system. This system runs a battery of standard tests for which Easton reimbursed $750 per blood sample. The cost structure of the current blood analysis system consists of annual fixed costs (lease payment of $1.6 million, supervisory costs of S400,000, and occupancy costs of $100,000) and variable costs per blood sample (direct labor, including transporting the blood samples, technicians, and so forth of S175, direct materials of $125, anda royalty fee of $150). Note: The current equipment is leased for $1.6 million per year plus S150 (royalty) for every blood sample analyzed. A competing vendor has approached Easton Diagnostics with a comparable system that performs the same set of tests. The reliability and quality of both the proposed and the existing systems are the same. The competing vendor is willing to lower the annual lease payment to S1.2 million but raise the royalty fee by $30 per blood sample to S180. Both the existing and proposed leases have the same contractual terms in all other respects. If Easton adopts the competing vendor's proposal, the current fee it charges (i.e., $750) and the direct labor costs per blood sample (i.e., proposed equipment adds S10 per blood sample analyzed to $175) are unaffected. However, the direct materials. REQUIRED: (a) How does Easton Diagnostic's break-even point for standard blood tests change if the competing vendor's proposal is accepted