Kent Company manufactures a product that sells for $50.00. Fixed costs are $260,000 and variable costs are $24.00 per unit. Kent can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. What effect would the purchase of the new machine have on Kent's break-even point in units?

		4,444 unit decrease.
		5,714 unit increase.
		No effect on the break-even point in units.
		800 unit decrease.
		800 unit increase.

Wang Company manufactures and sells a single product that sells for $450 per unit; variable costs are $270 per unit. Annual fixed costs are $801,000. Current sales volume is $4,200,000. Compute the current margin of safety in dollars.

		$2,000,000.
		$2,197,500.
		$2,460,000.
		$1,560,000.
		$2,895,652.