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Please correct answer Kent Company manufactures a product that sells for $62.00. Fixed costs are $299,000 and variable costs are $36.00 per unit. Kent can
Please correct answer
Kent Company manufactures a product that sells for $62.00. Fixed costs are $299,000 and variable costs are $36.00 per unit. Kent can buy a new production machine that will increase fixed costs by $13,000 per year, but will decrease variable costs by $4.00 per unit. What effect would the purchase of the new machine have on Kent's break-even point in units?
Multiple Choice
1,100 unit increase.
1,100 unit decrease.
3,579 unit increase.
4,317 unit decrease.
No effect on the break-even point in units.
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