Wang Co. manufactures and sells a single product that sells for $600 per unit; variable costs are $324 per unit. Annual fixed costs are $984,400. Current sales volume is $4,340,000. Compute the break-even point in dollars.

Multiple Choice

• $1,826,001.

• $2,061,248.

• $4,343,038.

• $3,045,648.

• $2,140,000.

Kent Co. manufactures a product that sells for $63.00. Fixed costs are $396,000 and variable costs are $30.00 per unit. Kent can buy a new production machine that will increase fixed costs by $19,800 per year, but will decrease variable costs by $4.80 per unit. What effect would the purchase of the new machine have on Kent's break-even point in units?

Multiple Choice

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

• 7,288 unit decrease.

• 6,989 unit increase.

• 1,000 unit increase.

• 1,000 unit decrease.