The statement of income for Dimmell Co. presented below represents the operating results for the fiscal year just ended. Dimmell had sales of 1,800 tons of product during the current year. The manufacturing capacity of Dimmell’s facilities is 3,000 tons of product. Dimmell Co.Statement of IncomeFor the Year Ended December 31, Year 2Sales$ 900,000Variable costs:Manufacturing$315,000Selling costs180,000(495,000)Contribution margin$ 405,000Fixed costs:Manufacturing$ 90,000Selling112,500Administration45,000(247,500)Operating income$ 157,500Income taxes (40%)(63,000)Net income$ 94,500Dimmell is considering replacing a highly labor intensive process with an automatic machine. This would result in an increase of $58,500 annually in manufacturing fixed costs. The variable manufacturing costs would decrease $25 per ton. The new breakeven volume in tons would be
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