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Kent CoManufactures a Product That Sells for $50

Question 154

Multiple Choice

Kent Co.manufactures a product that sells for $50.00.Fixed costs are $260,000 and variable costs are $24.00 per unit.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 dollars with the purchase of the new machine.


A) $500,000.
B) $440,678.
C) $521,923.
D) $480,000.
E) $460,000.

Correct Answer:

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