Question

Kent Manufacturing produces a product that sells for $50.00 and has variable costs of $24.00 per unit. Fixed costs are $260,000. Kent can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. Compute the revised break-even point in units if the new machine is purchased.
A.10,438 units.
B.8,814 units.
C.10,000 units.
D.9,200 units.
E.9,869 units.

Answer

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