Winthrop Manufacturing produces a product that sells for $50.00. Fixed costs are $260,000 and variable costs are $24.00 per unit. Winthrop 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 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.

Answer rating: 100% (QA)

The selling price of the product is 5000 If th... View the full answer