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Problem: Blast Corporation sells 180,000 units per year at a price of $7.00 per unit; its variable cost is $4.20 per unit; and fixed operating costs are $400,000. Blast is considering expanding into two additional states which would increase its fixed costs to $650,000 and would increase its variable unit cost to an average of $4.48 per unit. If Blast expands it expects to sell 270,000 units at $7.00 per unit. By how much will Blast's operating break even sales dollar level change? Explain your answers and provides examples.

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