Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

QlikView For Finance

Authors: B. Diane Blackwood

1st Edition

1784395749, 978-1784395742

More Books

Students also viewed these Finance questions

Question

define what is meant by the term human resource management

Answered: 1 week ago