What effect would the purchase of the new machine

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Question - Magic Corp. manufacturers compact discs that sell for $5. Fixed costs are $28,000 and variable costs are $3.60. Magicr can buy a newer production machine that will increase fixed costs by $8,000 per year, but will decrease variable costs by $0.40 per unit. What effect would the purchase of the new machine have on mueller's break- even point in units and if the company expects a profit of $20,000?

Reference no: EM132982566

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