Kolbe has been experiencing quality problems with a materials supplier. Changing suppliers will improve the quality of the product but will cause direct materials costs to increase by $1 per unit. Kolbe will dispose of a machine in the factory. The depreciation on that equipment is $500 per month. After some extensive market research, Kolbe has determined that a sales price increase of $2 per unit will not affect the sales volume and will be effective immediately. a. CM per unit: $
b. Break-even units: