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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 new
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 machine have on Kent's break-even point in units? Mutiple Choice 6,679 unit decrease. No effect on the break-even point in units. 1,300 unit increase. 6,567 unit increase. Kent Company manufactures a product that sels for $69.00. Fxed costs are $434,000 and variable costs are $34.00 per unit. Kent can buy a new production machine that will increase fired costs by $10,000 per year, but will decrease variable costs by 55.00 per unit. What effect would the purchase of the new machine have on Kent's break-even point in units? Mumble Choice 6.679 unit decrease. No effect on the break.even point in units 1,300 unit increase. 6,567 unit increase
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