Question
Presented below is Oxford Ltd.s income statement for 20x5: Sales (38980 units) $880708 Variable costs -361902 Contribution Margin 518806 Fixed Expenses -186587 Operating Income 332219
Presented below is Oxford Ltd.s income statement for 20x5:
| Sales (38980 units) | $880708 |
| Variable costs | -361902 |
| Contribution Margin | 518806 |
| Fixed Expenses | -186587 |
| Operating Income | 332219 |
| Income tax expense | -142854 |
| Net Income | $189365 |
Oxford Ltd. is considering installing a robot on its production line. This would decrease variable costs by $3 per unit and increase fixed costs by $160201.
If the company installs the robot, what would be the increase (decrease) in the break-even point (in units)? Note: a negative number represents a decrease in the break-even point.
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