Extra credit 15 points) Try it. Olinde Electronics the produces components that sell at $100 per unit. Olinde's fixed costs are $200,000 and variable costs are $50 per unit. About 5,000 components are produced and sold each year. EBIT is currently $50,000 and Olinde's assets (all equity financed) are $500,000. Olinde can change its production process by adding $400,000 to assets and $50,000 to fixed operating costs. This change would (1) reduce variable costs per unit by $10 and (2) increase output by 2,000 units but 13) the sales price on all units would have to be lowered to $95 to encourage sales of the additional output olinde has tax loss carry-forwards that cause its tax rate to be zero) It uses no debt, and its average cost of capital is 10%. es a) Calculate the old breakeven quantity of components, breakeven sales revenue and its current revenue. Indicate units or $ b) Calculate the new breakeven quantity and breakeven sales revenue. Show all work. Would Olinde's breakeven point increase, decrease or remain the same? d) What would be the firm's EBIT before and after the change? Show your work. e) Based on the calculations above, should Olinde make the change? Why