Eduardo Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality will generate more sales. Thecompany's contribution margin ratio is 20%, and its current breakeven point is $550,000 in sales revenue. If thecompany's fixed expenses increase by $55,000 due to theequipment, what will its new breakeven point be(in salesrevenue)?

If Eduardo Industries' fixed expenses increase by $55,000 due to theequipment, what will its new breakeven point be(in salesrevenue)?

Begin by identifying the general formula to compute the breakeven sales in dollars.