Kent Company manufactures a product that sells for $53.00 and has variable costs of $28.00 per unit. Fixed costs are $260,000. Kent can buy a new production machine that will increase fixed costs by $13,600 per year, but will decrease variable costs by $3.80 per unit. Compute the revised break-even point in units if the new machine is purchased.

Kent Company manufactures a product that sells for $53.00 and has variable costs of $28.00 per unit. Fixed costs are $260,000. Kent can buy a new production machine that will increase fixed costs by $13,600 per year, but will decrease variable costs by $3.80 per unit. Compute the revised break-even point in units if the new machine is purchased.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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