Presented below is Oxford Ltd.'s partial income statement for 20x5: Item Sales (38,900 units) Variable costs...

 

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Presented below is Oxford Ltd.'s partial income statement for 20x5: Item Sales (38,900 units) Variable costs Contribution Margin Fixed Expenses Operating Income Income tax expense Net Income Amount $895,000 (385,000) (203,400) 40% of operating income Oxford Ltd. is considering installing a robot on its production line. This would decrease variable costs by $5 per unit and increase total fixed costs by $152,000. If the company installs the robot, what would be the increase (decrease) in the breakeven point (in units)? Note: a negative number represents a decrease in the break-even point. Presented below is Oxford Ltd.'s partial income statement for 20x5: Item Sales (38,900 units) Variable costs Contribution Margin Fixed Expenses Operating Income Income tax expense Net Income Amount $895,000 (385,000) (203,400) 40% of operating income Oxford Ltd. is considering installing a robot on its production line. This would decrease variable costs by $5 per unit and increase total fixed costs by $152,000. If the company installs the robot, what would be the increase (decrease) in the breakeven point (in units)? Note: a negative number represents a decrease in the break-even point.

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