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Find what effect would the purchase of the new machine

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Question 1: Kent Co. manufacturers a product that sells for $61.00. Fixed costs are $297,000 and variable costs are $34.00 per unit. Kent can buy a new production machine that will increase fixed costs by $22,300 per year, but will decrease variable costs by $4.00 per unit. What effect would the purchase of the new machine have on Kent's break-even point in units?

Reference no: EM132615420

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