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Kent Company manufactures a product that sells for $67.00 and has variable costs of $39.00 per unit. Fixed costs are $350,000. Kent can buy a
Kent Company manufactures a product that sells for $67.00 and has variable costs of $39.00 per unit. Fixed costs are $350,000. Kent can buy a new production machine that will increase fixed costs by $20,600 per year, but will decrease variable costs by $6.00 per unit. Compute the contribution margin per unit if the machine is purchased. Multiple Choice $39.50. O $34.00 $45.00
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