Kent CoManufactures a Product That Sells for $50

question 146

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.What effect would the purchase of the new machine have on Kent's break-even point in units?

• A)800 unit increase.
• B)800 unit decrease.
• C)5,714 unit increase.
• D)4,444 unit decrease.
• E)No effect on the break-even point in units.

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Definitions:

Basic Conditions

Basic Conditions refer to the fundamental terms of employment, including work hours, salary, benefits, and working environment, usually outlined in labor laws or contracts.

Unrelated Diversification

A business strategy where a company expands into operations or markets with no relation to its existing operations.

Systematic Selection

A methodical process of choosing individuals for employment based on job-related criteria and assessments.

HRM Practices

Human Resource Management practices involve recruitment, selection, training, appraisal, compensation, and development of employees to enhance organizational performance.