Mulis Corporation manufactures DVDs that sell for $8.00. Fixed costs are $36,000 and variable costs are $4.40 per unit. Mullis can buy a newer production machine that will increase fixed costs by $6,000 per year, but will decrease variable costs by $0.60 per unit. What effect would the purchase of the new machine have on Mullis' break-even point in units?
1,667 unit increase.
1,429 unit decrease.
1,429 unit increase.
8,840 unit decrease.
No effect