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TB MC Qu. 18-152 (Algo) Kent Company manufactures a product... Kent Company manufactures a product that sells for $60.00 and has variable costs of $35.00

TB MC Qu. 18-152 (Algo) Kent Company manufactures a product...

Kent Company manufactures a product that sells for $60.00 and has variable costs of $35.00 per unit. Fixed costs are $285,000. Kent can buy a new production machine that will increase fixed costs by $15,900 per year, but will decrease variable costs by $4.50 per unit. Compute the revised break-even point in units if the new machine is purchased.

Multiple Choice

  • 12,036 units.

  • 9,661 units.

  • 11,400 units.

  • 10,200 units.

  • 7,618 units.

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