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Question 1: Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $150,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $400,000 and current break-even units are 4,000. If Forrester purchases this new equipment, the revised break-even point in units would:
Option A. Decrease by 8,000.
Option B. Increase by 250.
Option C. Increase by 8,000.
Option D. Increase by 12,000.
Option E. Decrease by 250.
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