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Kay has sales of $500,000, a contribution margin of $100 per unit, and fixed costs of $180,000. Its marketing department believes that spending an additional $20,000 on a new advertising campaign (an increase in fixed costs) will cause sales to increase by 20 percent. If the marketing department is correct and Kay spends the additional money, which of the following statements most accurately describes what will happen to Kay's breakeven point?
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