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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $140,000 and would decrease the current variable costs of
Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $140,000 and would decrease the current variable costs of $80 by $10 per unit. The selling price of $120 is not expected to change. Forrester's current break- even sales are $240,000 and current break even units are 2,000. If Forrester purchases this new equipment, the revised break-even point in units would Multiple Choice Increase by 200 Decrease by 200. O O o o op Increase by 12,000. Decrease by 9,000. Increase by 9,000
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