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Kent Company manufactures a product that sells for $62.00. Fixed costs are $299,000 and variable costs are $36.00 per unit. Kent can buy a new
Kent Company manufactures a product that sells for $62.00. Fixed costs are $299,000 and variable costs are $36.00 per unit. Kent can buy a new production machine that will increase fixed costs by $13,000 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? Multiple Choice 1,100 unit increase. No effect on the break-even point in units. 4,317 unit decrease. 1,100 unit decrease ( Prev 6 of 35 www B52 Next >
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