Question: A company is using the breakeven chart to evaluate the decision of buying new machinery that will increase its fixed costs by $200,000 Below is

A company is using the breakeven chart to evaluate the decision of buying new machinery that will increase its fixed costs by $200,000

Below is the information of the company

  • Variable cost per unit = $60
  • Total revenue = $1,360,000
  • Units sold = 8,500 units
  • Total Cost = $710,000
    • Total fixed costs of the company

before 200,000 increase

    • is

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