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Compute the revised break-even point in dollars

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Question - Kent Manufacturing produces a product that sells for $60.00. Fixed costs are $161,000 and variable costs are $21.00 per unit. Kent can buy a new production machine that will increase fixed costs by $10,500 per year, but will decrease variable costs by $3.00 per unit. Compute the revised break-even point in dollars with the purchase of the new machine.

a. $247,692

b. $230,000

c. $245,000

d. $263,846

Reference no: EM132597374

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