Kent Co.manufactures 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.

Question

Quizplus · Accepted Answer

The Answer of Kent Co.manufactures 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.

Kent CoManufactures a Product That Sells for $50