How large could additional fixed costs from new equipment

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Logue Lock Company expects its fixed costs next year to be $750,000. The selling price for its lock is $40. Logue is considering the purchase of some new equipment that is expected to reduce unit variable costs from a current level of $25 to a new level of $20.

How large could the additional fixed costs from the new equipment be without affecting the breakeven point?

Reference no: EM131336815

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