Mullis Corp. manufactures DVDs that sell for $5.20. Fixed costs are $25,000 and variable costs are $3.60 per unit. Mullis can buy a newer production machine that will increase fixed costs by $6,500 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?

Select one:

229 unit increase

No effect.

625 unit decrease

83 unit increase.

57 unit increase.

44 unit decrease.

NOT ENOUGH DATA TO ANSWER

88 unit decrease.