Kent Company manufactures a product that sells for $60.00. Fixed costs are $285,000 and variable costs are $35.00 per unit. Kent can buy a new production machine that will increase fixed costs by $15,900 per year, but will decrease variable costs by $4.50 per unit. What effect would the purchase of the new machine have on Kent's break-even point in units?

Multiple Choice

3,487 unit increase.

No effect on the break-even point in units.

1,200 unit decrease.

1,200 unit increase.

2,780 unit decrease.