O'KeefeO'Keefe Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality will generate more sales. The$$ company's contribution margin ratio is $4040\%,$ and its current breakeven point is $ $650$ comma $000$$$650,000$ in sales revenue. If the$$ company's fixed expenses increase by $ $30$ comma $000$$$30,000$ due to the$$ equipment, what will its new breakeven point be$($in sales$$ revenue$)?$

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Part $1$

If O'KeefeO'Keefe $$Industries$\text{'}$ fixed expenses increase by $ $30$ comma $000$$$30,000$ due to the$$ equipment, what will its new breakeven point be$($in sales$$ revenue$)?$

Begin by identifying the general formula to compute the breakeven sales in dollars.

$($

Fixed expenses

$+$

Operating income

$)-$:

Contribution margin ratio

$=$

Breakeven sales in dollars

Part $2$

O'Keefe will now have to generate

of sales revenue to break even.