Forrester Company is considering buying new equipment that would increase monthly fixed costs from $$180,000$ to $$210,000$ and would decrease the current variable costs of $$70$ by $$15$ per unit. The selling price of $$110$ is not expected to change. Forrester's current break$-$even sales are $$460,000$ and current break$-$even units are $8,400.$ If Forrester purchases this new equipment, the revised contribution margin ratio would be:

Multiple Choice

$35\%.$

$55\%$

$50\%$

$70\%$

$15\%.$