Forrester Company is considering buying new equipment that would increase monthly fixed costs from $577,500 to $741,000 and would decrease the current variable costs of $75 by $10 per unit. The selling price of $130 is not expected to change. Forrester's current break-even sales are $1,365,000 and current break-even units are 10,500. If Forrester purchases this new equipment, the revised break-even point in dollars would be:

rev: 05_02_2019_QC_CS-167699

Multiple Choice

• $1,155,000.

• $1,365,000.

• $525,000.

• $1,575,000.

• $1,482,000