The Cullumber Publications Textbook Company sells all of its books for $100 per book, and it currently costs $50 in variable costs to produce each text. The fixed costs, which include depreciation and amortization for the firm, are currently $2 million per year. Management is considering changing the firms production technology, which will increase the fixed costs for the firm by 20 percent but decrease the variable costs per unit by 20 percent. If management expects to sell 45,000 books next year, should they switch technologies?

The current EBIT for the firm is $

If the firm changes technology, the firms new EBIT will be $enter the firms new EBIT in dollars