Forrester Company is considering buying new equipment that would increase monthly fixed costs from $420,000 to $522,000 and would decrease the current variable costs of $80 by $20 per unit. The selling price of $120 is not expected to change. Forrester's current break-even sales are $1,260,000 and current break-even units are 10,500. If Forrester purchases this new equipment, the revised break-even point in dollars would be:

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Multiple Choice $840,000. $1,260,000 $525.000. $1,680,000. Multiple Choice $840,000. $1,260,000 $525.000. $1,680,000.

Answer rating: 100% (QA)

New equipment will increase 420000 to 522000 Varisble ca... View the full answer