EBIT: The Generic Publications Textbook Company sells all of its books for $100 per book, and it currently costs $50 in variable costs to produce each text. The fixed costs, which include depreciation and amortization for the firm, are currently $2 million per year. The firm is considering changing its production technology, which will increase the fixed costs for the firm by 50 percent but decrease the variable costs per unit by 50 percent. If the firm expects to sell 45,000 books next year, should the firm switch technologies?

	Current	New
Price	$100	$100
Unit Variable Cost	$50	$25.0
FC(incl. dep)	$ 2,000,000	$ 3,000,000
Expected Sales	45,000	45,000	Units

Revenues	?	?
Less VC	?	?
Less FC	?	?	Additional (Less) EBITDA with new technology
EBITDA	?	?
Contribution Margin	?	?

DOL	?	?
EBITDA Break Even	?	?
Answer: