Would Oleck’s break-even point increase or decrease if it made the change? Calculate old and new break-even points

Incomplete question. The full question read;

Oleck Inc. produces stereo components that sell at P = $100 per unit. Oleck’s fixed costs are $200,000, variable costs are $50 per unit, 5,000 components are produced and sold each year, EBIT is currently $50,000, and Oleck’s assets (all equity financed) are $500,000. Oleck can change its production process by adding $400,000 to assets and $50,000 to fixed operating costs. This change would (1) reduce variable costs per unit by $10 and (2) increase output by 2,000 units, but (3) the sales price on all units would have to be lowered to $95 to permit sales of the additional output. Oleck has tax loss carry-forwards that cause its tax rate to be zero, it uses no debt, and its average cost of capital is 10%.  

Would Oleck’s break-even point increase or decrease if it made the change? Calculate old and new break-even points  

a) Old break-even point =  units  

b) New break-even point =  units  

c) Increase or decrease?

a) 4,000 units

b) 4,545 units

c) increase

Explanation:

To find the break-even point based on units, we use the formula  = Total Fixed Costs ÷ (Revenue per Unit – Variable Cost per Unit).

Old break-even point:

∴ Old break-even point (units) = = 4,000 units

New break-even point:

∴ New break-even point (units) = = 4,545 units

the first successful, urban blues recording, selling more than 75,000 copies, was made in year 1920.

mamie smith recorded the first commercially successful example of the urban blues,   with the recording of “crazy blues”."crazy blues" was recorded on august 10, 1920, in new york city. within a month of the release of “crazy blues” it had sold 75,000 copies.

it is a i took the test.