Kent CoManufactures a Product That Sells for $50

question 143

Multiple Choice

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.

---

Definitions:

Relative Frequency

The ratio of the number of times a particular value or event occurs to the total number of occurrences.

Frequency

The number of times an event or data value occurs.

Quantitative Data

Numerical values that indicate how much or how many.

Graphical Presentation

The representation of data in a visual format, such as charts or graphs, to make the data easier to understand and interpret.