Guys co manufactures a product that sells for 12 per unit

Reference no: EM13571596

Guy's Co. manufactures a product that sells for $12 per unit. Total fixed costs are $96,000 and variable costs are $7 per unit. Guy can buy a newer production machine that will increase total fixed costs by $22,800, but variable costs will be decreased by $0.40 per unit. What effect would the purchase of the new machine have on Guy's break-even point in units?

Reference no: EM13571596

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