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Considering the purchase of a new machine

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Management at Pick-a-Pair are considering the purchase of a new machine that will lower variable costs by R8 per unit. However, this will add to the fixed costs. How large can the addition to fixed costs be to keep the break-even point constant, at 27 000 units (bearing in mind that the current contribution is R21 per unit)?

Reference no: EM133256421

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