Shawn Pen & Pencil Sets Incorporated has fixed costs of $$235,000.$ Its product currently sells for $$10$ per unit and has variable costs of $$5\mathrm{.}00$ per unit. Ms$.$ Bic, the head of manufacturing, proposes to buy new equipment that will cost $$360,000$ and drive up fixed costs to $$337,500.$ Although the price will remain at $$10$ per unit, the increased automation will reduce costs per unit to $$3\mathrm{.}75.$

Compute the following break$-$even points.

Note: Do not round intermediate calculations.

As a result of Bic$$s suggestion, will the break$-$even point go up or down?

multiple choice

The break$-$even point will go up$.$

The break$-$even point will go down.