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Beloit Corporation has the following information related to its manufacturing and selling of computer back-up...

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Accounting

Beloit Corporation has the following information related to its manufacturing and selling of computer back-up hard drives.
Current selling price, per unit
$80.00
Direct materials, per unit
$15.00
Direct labor, per unit
$5.00
Variable manufacturing overhead, per unit
$10.00
Fixed manufacturing overhead
$200,000
Fixed operating expenses
$50,000
Analysts compute the break-even point using the above information and conclude that production capacity and estimated sales can reach that point.
However, a few days later, the analysts learn that the selling price will increase by 5%.
What is the effect of this change on the original break-even point?

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