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Shawn Pen & Pencil Sets Incorporated has fixed costs of $553,000. Its product currently sells for $25 per unit and has variable costs of $11.00

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Shawn Pen \& Pencil Sets Incorporated has fixed costs of $553,000. Its product currently sells for $25 per unit and has variable costs of $11.00 per unit. Ms. Bic, the head of manufacturing. proposes to buy new equipment that will cost $510,000 and drive up fixed costs to $665,000. Although the price will remain at $25 per unit, the increased automation will reduce costs per unit to $7.50. a. Compute the following break-even points. Note: Do not round intermediate calculations. b. As a result of Bic's suggestion, will the break-even point go up or down? The break-even point will go up. The break-even point will go down. Shawn Pen \& Pencil Sets Incorporated has fixed costs of $553,000. Its product currently sells for $25 per unit and has variable costs of $11.00 per unit. Ms. Bic, the head of manufacturing. proposes to buy new equipment that will cost $510,000 and drive up fixed costs to $665,000. Although the price will remain at $25 per unit, the increased automation will reduce costs per unit to $7.50. a. Compute the following break-even points. Note: Do not round intermediate calculations. b. As a result of Bic's suggestion, will the break-even point go up or down? The break-even point will go up. The break-even point will go down

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