What would be the change in break-even volume be

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A company makes an oil level measuring device. the plant is located in Michigan with an average January temperature of 25 degrees. the plant operates 250 days per year. total annual fixed cost for the plant is $775,000. The plant produces 1600 units each work day and sells them for $9.50 giving annual profit of $950,000. An improved process would add $175,000 to the fixed cost but would increase the contribution by $1.20 while allowing a 10% reduction in the selling price which would increase the contribution by steady sales volume in the face of competition. What would be the change in break-even volume be? What happens to the company's profits? How much is it?

Reference no: EM132193060

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