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Kent Co. manufactures a product that sells for $51.00. Fixed costs are $231,000 and variable costs are $29.00 per unit. Kent can buy a new
Kent Co. manufactures a product that sells for $51.00. Fixed costs are $231,000 and variable costs are $29.00 per unit. Kent can buy a new production machine that will increase fixed costs by $16,000 per year, but will decrease variable costs by $4.00 per unit. What effect would the purchase of the new machine have on Kent's break-even point in units? 1,000 unit decrease. (0) No effect on the break-even point in units. 1,000 unit increase. O 3,524 unit increase. O 1,395 unit decrease
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