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Kent Company manufactures a product that sells for $50.00. Fixed costs are $260,000 and varlable costs are $24.00 per unlt. Kent can buy a new
Kent Company manufactures a product that sells for $50.00. Fixed costs are $260,000 and varlable costs are $24.00 per unlt. Kent can buy a new production machine that will Increase fixed costs by $11,400 per year, but will decrease varlable costs by $3.50 per unit. What effect would the purchase of the new machine have on Kent's break-even point In units? Multiple Choice 4,444 unit decrease. No effect on the break-even point in units. 800 unit Increase. 5,714 unit Increase. 800 unit decrease
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