Kent Co. manufactures a product that sells for $64.00 and has variable costs of $35.00 per unit. Fixed costs are $348,000, Kent can buy a new production machine that will increase fixed costs by $20,500 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 10,388 units. O 9,329 units. 11,000 units. 12,707 units.

Kent Co. manufactures a product that sells for $64.00 and has variable costs of $35.00 per unit. Fixed costs are $348,000, Kent can buy a new production machine that will increase fixed costs by $20,500 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 10,388 units. O 9,329 units. 11,000 units. 12,707 units.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 5P

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