Kent CoManufactures a Product That Sells for $50

question 212

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.