Question
Presented below is Oxford Ltd.s income statement for 20x5: Sales (35190 units) $869349 Variable costs -372491 Contribution Margin 496858 Fixed Expenses -215851 Operating Income 281007
Presented below is Oxford Ltd.s income statement for 20x5: Sales (35190 units) $869349 Variable costs -372491 Contribution Margin 496858 Fixed Expenses -215851 Operating Income 281007 Income tax expense -106783 Net Income $174224 Oxford Ltd. is considering installing a robot on its production line. This would decrease variable costs by $4 per unit and increase fixed costs by $185657. 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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