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Blossom Company manufactures a product which sells for $20 each. Each unit of product has...

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Accounting

Blossom Company manufactures a product which sells for $20 each. Each unit of product has a variable cost of $5 to manufacture. Fixed costs normally incurred are $48000. Blossom Company is considering automating the manufacturing process, which would require a capital investment which would increase fixed costs by $24000. As a result of the automation, variable costs would decrease by 20%. What would the new breakeven level in units be for Blossom Company if it decides to automate the manufacturing process?

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