Problem $1.$ ABC Company makes a product that sells for $$60$ per unit. The present factory uses semi$-$automated equipment in its current production process. Variable expenses account for $75\%$ of the selling price. Annual production averages $20,000$ units. At this production level, ABC breaks even.

A new, automated piece of equipment is available on the market. It can be leased, increasing fixed costs to $$600,000$ per year, but variable costs would be reduced to $$36$ per unit.

Required:

a$)$ What are ABC$$s current total fixed costs?

b$)$ What would be the new breakeven point in units for ABC if the new equipment is leased?

c$)$ If the new equipment is leased but production stays at $20,000$ units per year, what is the price ABC must charge in order to break even?

d$)$ Refer to the original data. If annual demand for this part is expected to increase to $30,000$ units, should ABC lease the new equipment? Provide calculations to justify your answer.