Kent Manufacturing produces a product that sells for $67.00. Fixed costs are $350,000 and variable costs are $39.00 per unit. Kent can buy a new production machine that will increase fixed costs by $20,600 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?

Multiple Choice

• 1,600 unit decrease.

• 3,846 unit increase.

• 2,341 unit decrease.

• No effect on the break-even point in units.

• 1,600 unit increase.