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Kent Company manufactures a product that sells for $69.00 . Fixed costs are $434,000 and variable costs are $34.00 per unit. Kent can buy a
Kent Company manufactures a product that sells for
$69.00
. Fixed costs are
$434,000
and variable costs are
$34.00
per unit. Kent can buy a new production machine that will increase fixed costs by
$10,000
per year, but will decrease variable costs by
$5.00
per unit. What effect would the purchase of the new mach have on Kent's break-even point in units?\ Multiple Choice\ 1,300 unit increase.\ 1,300 unit decrease.\ 6,567 unit increase.\ 6.679 unit decrease.
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