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Mullis Corp. manufactures DVDs that sell for $5.70. Fixed costs are $29,000 and variable costs are $3.70 per unit. Mullis can buy a newer production

Mullis Corp. manufactures DVDs that sell for $5.70. Fixed costs are $29,000 and variable costs are $3.70 per unit. Mullis can buy a newer production machine that will increase fixed costs by $4,350 per year, but will decrease variable costs by $0.30 per unit. What effect would the purchase of the new machine have on Mullis' break-even point in units?

8,772 unit decrease.

2,175 unit increase.

No effect.

1,891 unit decrease.

1,891 unit increase.

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