Kent Company manufactures a product that sells for $120.00. Fixed costs are $179,400 and variable costs are $36.00 per unit. Kent can buy a new production machine that will increase fixed costs by $12,480 per year, but will decrease variable costs by $9.60 per unit. Compute the revised break even point in dollars with the purchase of the new machine.
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am113.
![Kent Company manufactures a product that sells for $120.00. Fixed costs are $179,400 and variable costs are $36.00 per unit. Kent can buy a new
production machine that will increase fixed costs by $12,480 per year, but will decrease variable costs by $9.60 per unit. Compute the revised break-
even point in dollars with the purchase of the new machine.
Multiple Choice
О
$274,114.
О
$153,771.
О
$246,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F77f27f90-d61a-4914-bc21-a591e7636e1a%2F56887ea7-03f4-4eb6-9112-27ef02783c04%2F2htitle_processed.png&w=3840&q=75)
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- Kent Company manufactures a product that sells for $100.00. Fixed costs are $151,800 and variable costs are $40.00 per unit. Kent can buy a new production machine that will increase fixed costs by $9,900 per year, but will decrease variable costs by $6.00 per unit. Compute the revised break - even point in dollars with the purchase of the new machine. Multiple Choice $253,000. $230,000. $269,500. $202,400. $245,000.Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.10. The machine will increase fixed costs by $11,750 per year. The information they will use to consider these changes is shown here. A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round per unit cost answers to two decimal places. Current New Machine Units Sold 211,000 fill in the blank 1 Sales Price Per Unit $2.10 $fill in the blank 2 Variable Cost Per Unit $1.75 $fill in the blank 3 Contribution Margin Per Unit $0.35 $fill in the blank 4 Fixed Costs $49,000 $fill in the blank 5 Break-Even (in units) 140,000 fill in the blank 6 Break-Even (in dollars) $294,000 $fill in the blank 7 B. What will the impact be on net operating income if Flanders purchases the new machinery? Current New Machine Sales $443,100 $fill in the blank 8 Variable Costs 369,250 fill in the blank 9 Contribution Margin…Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.10. The machine will increase fixed costs by $12,250 per year. The information they will use to consider these changes is shown here. A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round per unit cost answers to two decimal places. Current New Machine Units Sold 214,000 fill in the blank 1 Sales Price Per Unit $2.15 $fill in the blank 2 Variable Cost Per Unit $1.70 $fill in the blank 3 Contribution Margin Per Unit $0.45 $fill in the blank 4 Fixed Costs $67,500 $fill in the blank 5 Break-Even (in units) 150,000 fill in the blank 6 Break-Even (in dollars) $322,500 $fill in the blank 7 B. What will the impact be on net operating income if Flanders purchases the new machinery? Current New Machine Sales $460,100 $fill in the blank 8 Variable Costs 363,800 fill in the blank 9 Contribution Margin…
- Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.10. The machine will increase fixed costs by $12,000 per year. The information they will use to consider these changes is shown here. A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round per unit cost answers to two decimal places. Current New Machine Units Sold 221,000 Sales Price Per Unit $2.10 Variable Cost Per Unit $1.70 Contribution Margin Per Unit $0.40 %24 Fixed Costs $60,000 Break-Even (in units) 150,000 Break-Even (in dollars) $315,000 B. What will the impact be on net operating income if Flanders purchases the new machinery? Current New Machine Sales $464,100 Variable Costs 375,700 Contribution Margin $88,400 Fixed Costs 60,000 Net Income (Loss) $28,400 C. What would your recommendation be to Flanders regarding this purchase? a. The new equipment will increase fixed costs substantially but net income will still…Kent Co. manufactures a product that sells for $57.00 and has variable costs of $34.00 per unit. Fixed costs are $253,000. Kent can buy a new production machine that will increase fixed costs by $24,200 per year, but will decrease variable costs by $5.00 per unit. Compute the contribution margin per unit if the machine is purchased.Anderson Inc. uses packing machines to prepare their product for shipping. One machine costs $136,000 and lasts about 5 years before it needs to be replaced. The operating cost per machine is $6,500 a year. Ignoring taxes, what is the equivalent annual cost of one packing machine if the required rate of return is 11%? Multiple Choice $49,904 $51,036 $44,298 $43,298 $50,776
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- 1. Should SS upgrade its production line or replace it? Show your calculations 2. Suppose the one-time equipment cost to replace the production equipment is negotiable.All other data are as given previously. What is the maximum one-time equipment cost that SSwould be willing to pay to replace the old equipment rather than upgrade it?Kent Company manufactures a product that sells for $54.00. Fixed costs are $341,000 and variable costs are $23.00 per unit. Kent can buy a new production machine that will increase fixed costs by $14,200 per year, but will decrease variable costs by $6.00 per unit. What effect would the purchase of the new machine have on Kent's break-even point in units?Acme Products, Inc. is interested in producing and selling an improved widget. Market research indicates that customers would be willing to pay $90 for such a widget and that 50,000 units could be sold each year at this price. If Acme Products requires a 75% return on sales to undertake production, what is the target cost for the new widget? Select one: O a. $31.50. O b. $67.50. OC. $58.50. Od. $22.50.
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