Question: 5. Imusa Electronics sells homework machines for $80 each. Variable costs per unit are $34.85 and total fixed costs are $43,750. Imusa is considering the
5. Imusa Electronics sells homework machines for $80 each. Variable costs per unit are $34.85 and total fixed costs are $43,750. Imusa is considering the purchase of new equipment that would increase fixed costs to $48,700, but decrease the variable costs per unit by $5. At that level, Imusa Electronics expects it can sell 1,500 units next year. What is the companys break-even point in units if it purchases the new equipment, assuming the selling price remains constant?
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