Mullis Corp.manufactures DVDs that sell for $5.00.Fixed costs are $28,000 and variable costs are $3.60 per unit.Mullis can buy a newer production machine that will increase fixed costs by $8,000 per year,but will decrease variable costs by $0.40 per unit.What effect would the purchase of the new machine have on Mullis' break-even point in units?
A)4,444 unit increase.
B)9,850 unit decrease.
C)5,714 unit increase.
D)4,444 unit decrease.
E)No effect.

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The Answer of Mullis Corp.manufactures DVDs that sell for $5.00.Fixed costs are $28,000 and variable costs are $3.60 per unit.Mullis can buy a newer production machine that will increase fixed costs by $8,000 per year,but will decrease variable costs by $0.40 per unit.What effect would the purchase of the new machine have on Mullis' break-even point in units?
A)4,444 unit increase.
B)9,850 unit decrease.
C)5,714 unit increase.
D)4,444 unit decrease.
E)No effect.