Original camcorder sales and cost data for Vargo Video:

Management invests in new robotic equipment that will lower the amount of direct labor required to make camcorders. Estimates are that total fixed costs will increase 60% and that variable cost per unit will decrease 40%.

Which of the following statement is false?

		After the adoption of the new equipment, the new total fixed cost for Vargo Company is $320,000.
		After the adoption of the new equipment, the new variable cost per unit for Vargo Company is $180.
		After the adoption of the new equipment, the new break-even sales in unit are 1000 units.
		After the adoption of the new equipment, Vargo Company needs to produce more units of products to achieve break-even.

Unit selling price Unit variable cost Total fixed costs Break-even sales $500 $300 $200,000 $500,000 or 1,000 units