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Mullis Corp. manufactures DVDs that sell for $5.10. Fixed costs are $42,000 and variable costs are $3.60 per unit. Mullis can buy a newer production
Mullis Corp. manufactures DVDs that sell for $5.10. Fixed costs are $42,000 and variable costs are $3.60 per unit. Mullis can buy a newer production machine that will increase fixed costs by $8,400 per year, but will decrease variable costs by $0.30 per unit. What effect would the purchase of the new machine have on Mullis' break-even point in units?
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