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Holdings Corp has fixed costs of $378,400. Its product currently sells for $16 per unit and has variable costs of $7.40 per unit. Mr. Careful,

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Holdings Corp has fixed costs of $378,400. Its product currently sells for $16 per unit and has variable costs of $7.40 per unit. Mr. Careful, the head of manufacturing, proposes to buy new equipment that will cost $420,000 and drive up fixed costs to $516,000. Although the price will remain at $16 per unit, the increased automation will reduce costs per unit to $5.25. a. Compute the following break-even points. (Do not round intermediate calculations. Round your answers to the nearest whole number.) Current break-even point Proposed new break-even point units units b. As a result of Bic's suggestion, will the break-even point go up or down? The break-even point will go up. The break-even point will go down

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