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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $150,000 and would decrease the current variable costs of

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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $150,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester's current break even sales are $400,000 and current break-even units are 4,000. If Forrester purchases this new equipment, the revised break even point in dollars would be: Multiple Choice () S300,000, $400.000 $100 S325.000 35.000

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