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Compute the revised break-even point in units

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Question - Kent Company manufactures a product that sells for $70.00 and has variable costs of $36.00 per unit. Fixed costs are $408,000. Kent can buy a new production machine that will increase fixed costs by $28,800 per year, but will decrease variable costs by $5.00 per unit. Compute the revised break-even point in units if the new machine is purchased.

a. 12,000 units.

b. 11,200 units.

c. 12,847 units.

d. 10,462 units.

e. 10,654 units.

Reference no: EM133065981

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