J&B INC. sells brakes pads @ $40, variable costs are $20 and fixed costs are $80,000. A new machine will reduce variable costs by $4, but increase fixed costs by $28,000. HOW MUCH WILL CHANGE THE BREAK EVEN POINT IN UNITS IF THE NEW MACHINE IS ACQUIRED?

IF THERE IS A REDUCTION IN THE BEP WRITE THE NUMBER WITH THE MINUS SIGN (DON'T USE PARENTHESIS).

IF THERE IS AN INCREASE IN THE BEP WRITE THE NUMBER AS POSITIVE DON'T USE COMMA SEPARATORS

EX. A REDUCTION OF 1,000 UNITS WRITE -1000

EX AN INCREASE OF 1,000 UNITS WRITE 1000