Jay Linooleum Company has fixed costs of $70,000. Its product currently sells for $4.per share and has variable costs per unit of $2.60.Mr. Thomas the head of manufacturing proposes to buy new equipment that will cost $300,000 and drive up fixed costs to $150,000.Although the price will remain at $4. per unit ,the increase automation will reduce varible costs per unitto $2.25.
As a result of the Thomas's suggustion will the break evenpoint go up or down.
Comute the necessary numbers.