One Point Solutions produces a product with the following cost at the current output of 30,000 units at selling price of $24 per unit.
Particulars
Production costs (Variable) $12 per unit
Selling costs (Variable) $4 per unit
Fixed Cost $90,000 per annum

the company is of the view that by hiring an improved machine for production the variable cost of production would decrease to $10 per unit. The hiring cost of the machine would be $50,000.

Required:

1. Break-even point in units and $ before and after the hire of new machine.

2. Number of units that must be sold to achieve the same profit as is currently earned, if the new machine is hired.