Kent Manufacturing produces a product that sells for $50.00. Fixed costs are $260,000 and variable costs are $24.00 per unit. Kent can buy a new production machine that will increase fixed costs by $16,000 per year, but will decrease variable costs by $6.00 per unit. What effect would the purchase of the new machine have on Kent's break-even point in units?

Select one:

1,375 unit increase

1,000 unit increase

1,000 unit decrease.

800 unit decrease.

No effect on the break-even point in units.

800 unit increase.

1,375 unit decrease

5,714 unit increase.