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Question
Mullis Corp. manufactures DVDs that sell for $5.00. Fixed costs are $28,000 and variable costs are $3.60 per unit. Mullis 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 Mullis' break-even point in units?A.4,444 unit increase.
B.9,850 unit decrease.
C.5,714 unit increase.
D.4,444 unit decrease.
E.No effect.
Answer
This answer is hidden. It contains 153 characters.
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