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What effect would the purchase of the new machine have

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Reference no: EM133031660

Problem - Mullis Corp. manufactures DVDs that sell for $6.00. Fixed costs are $39,000 and variable costs are $4.70 per unit. Mullis can buy a newer production machine that will increase fixed costs by $12,000 per year, but will decrease variable costs by $0.40 per unit. What effect would the purchase of the new machine have on Mullis' break-even point in units?

Reference no: EM133031660

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