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The following monthly information is available about a companys only product: 1....

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Accounting

The following monthly information is available about a companys only product:
1. Compute the breakeven point in units and sales dollars.
2. Management is contemplating the using cheaper direct materials in the product. This change would reduce variable costs by $15 per unit. The companys sales manager predicts that this would reduce the overall quality of the product and thus would result in a decline in sales to a level of 2,400 units per month. Should this change be made? Answer in 1-2 brief sentences and show your work to support your answer.

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