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TB MC Qu. 18-148 (Algo) Bradley Company manufactures... Bradley Company manufactures a single product that sells for $400 per unit and whose variable costs are

TB MC Qu. 18-148 (Algo) Bradley Company manufactures...

Bradley Company manufactures a single product that sells for $400 per unit and whose variable costs are $288 per unit. The companys annual fixed costs are $1,376,760. The break-even point in dollars of sales is:

Multiple Choice

  • $6,293,760.

  • $2,753,520.

  • $4,917,000.

  • $4,134,416.

  • $1,639,000.

TB MC Qu. 18-153 (Algo) Kent Company manufactures a product...

Kent Company manufactures a product that sells for $55.00. Fixed costs are $294,000 and variable costs are $27.00 per unit. Kent can buy a new production machine that will increase fixed costs by $16,400 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

  • 800 unit increase.

  • 800 unit decrease.

  • 5,615 unit increase.

  • 5,886 unit decrease.

  • No effect on the break-even point in units.

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