Accounting · Cost and Management Accounting

Eden Ltd produces a single product with the following data: Selling price: $50 per unit Variable material cost: $20 per unit Other variable costs: $10 per unit Fixed costs: $120,000 for up to 10,000 units. If production exceeds 10,000 units, an additional supervisor is required at a cost of $30,000. The company is considering an automated process that would reduce variable labour costs by $5 per unit but increase total fixed costs by $40,000 across all levels of activity. Budgeted production is currently 9,000 units. What is the new breakeven point (in units) if the automated process is adopted?