Forrester Company is considering buying new equipment that would increase monthly fixed costs from $124,000 to $159,000 and would decrease the current variable costs of $80 by $20 per unit. The selling price of $120 is not expected to change. Forrester's current break-even sales are $372,000 and current break-even units are 3,100. If Forrester purchases this new equipment, the revised break-even point in units would:

rev: 10_23_2018_QC_CS-144724

Multiple Choice

• Increase by 450.

• Decrease by 450.

• Increase by 6,200.

• Decrease by 3,100.

• Increase by 3,100.