PROBLEM 7 (15 points) The Brofitt Company sells a single product for $70 per unit. The company's cost structure is $30,000 of fixed costs and variable costs equal to 40% of sales. 1. Compute the break-even point. 2. If the company increases its fixed costs to $40,000 and decreases its variable costs to 30% of sales, will its break-even point move up or down?