Question

Hess Co. manufactures a product that sells for $12 per unit. Total fixed costs are $96,000 and variable costs are $7 per unit. Hess can buy a newer production machine that will increase total fixed costs by $22,800 but variable costs will be decreased by $0.40 per unit.

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



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  • CreatedSeptember 19, 2013
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