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Kent Co. manufactures a product that sells for $60.00. Fixed costs are $285,000 and variable costs are $35.00 per unit. 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. What effect would the purchase of the new machine have on Kent's break-even point in units?
Answers: 2
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Kent Co. manufactures a product that sells for $60.00. Fixed costs are $285,000 and variable costs a...
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