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Compute the revised break-even point in units

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Question - Kent Manufacturing produces a product that sells for $50.00 and has variable costs of $24.00 per unit. Fixed costs are $260,000. Kent can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. Compute the revised break-even point in units if the new machine is purchased.

A. 10,438 units.

B. 8,814 units.

C. 10,000 units.

D. 9,200 units.

E. 9,869 units.

Reference no: EM131873591

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