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XYZ Company manufacturers compact disks that sell of $5.00. Fixed costs are $84,000 and variable costs are $2.60 per unit. They can buy a new
XYZ Company manufacturers compact disks that sell of $5.00. Fixed costs are $84,000 and variable costs are $2.60 per unit. They can buy a new production machine that will increase fixed costs by $16,800, but variable costs will be decreased by $.40 per unit. What effect would the purchase of the new machine have on XYZs break-even point?
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