### Break-even-analysis

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Break-even-analysis

Acme Co. manufactures a product that sells for \$12 per unit. Total fixed costs are \$96,000 and variable costs are \$7 per unit. Acme 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. What effect would the purchase of the new machine have on Acme's break-even point in units?

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