DXZ, Inc currently produces one product which sells for $250 per unit. The company's fixed costs are $75,000

per year; variable costs are $205 per unit.

A salesman has offered to sell the company a new piece of equipment
which will increase fixed costs to $100,000. The salesman claims that the company's break-even point will not
be altered if the company purchases this equipment. What will be the company's new variable cost per unit?

Current break-even point = $75,000/($250 - $