Mullis Corp. manufactures DVDs that sell for $5.20. Fixed costs are $24,998 and variable costs are $3.60 per unit. Mullis can buy a newer production machine that will increase fixed costs by $7,812 per year, but will decrease variable costs by $0.50 per unit. What effect would the purchase of the new machine have on Mullis' break-even point in units?

Seleccione una:

229 unit increase

88 unit decrease.

44 unit decrease.

57 unit increase.

125 unit increase

83 unit increase.

NOT ENOUGH DATA TO ANSWER

No effect.