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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $396,000 to $684,000 and would decrease the current variable costs of
Forrester Company is considering buying new equipment that would increase monthly fixed costs from $396,000 to $684,000 and would decrease the current variable costs of $80 by $20 per unit. The selling price of $120 is not expected to change. Forrester's current break-even sales are $1,188,000 and current break-even units are 9,900. If Forrester purchases this new equipment, the revised break-even point in dollars would be: Multiple Choice $792,000. O $1,188,000. $495,000 O $1,584,000. (0) $1,368,000
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