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In 2019, Justin sold 3,000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $500,000. The same selling price is

In 2019, Justin sold 3,000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $500,000. The same selling price is expected for 2020. Justin is tentatively planning to invest in equipment that would increase fixed costs by 40%, while decreasing variable costs per unit by 20%. What is Justins break-even point in units for 2020?

a.

2,000

b.

1,750

c.

1,500

d.

1,250

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