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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $450,000 to $432,000 and would decrease the current variable costs of

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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $450,000 to $432,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $120 is not expected to change. Forrester's current break-even sales are $1,080,000 and current break-even units are 9,000. If Forrester purchases this new equipment, the revised break- even point in dollars would be: Multiple Choice 0 $900,000 0 $1,080,000. 0 $450,000. 0 $1,260,000

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