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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $243,000 to $444,000 and would decrease the current variable costs of
Forrester Company is considering buying new equipment that would increase monthly fixed costs from $243,000 to $444,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $810,000 and current break-even units are 8,100. If Forrester purchases this new equipment, the revised break-even point in dollars would be: Multiple Choice $607,500. $810,000. $324,000. $1,012,500. $1,110,000
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