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Compute the revised break-even point in dollars

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Question - Kent Manufacturing produces a product that sells for $50.00. Fixed costs are $260,000 and variable costs are $24.00 per unit. Kent 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 the revised break-even point in dollars with the purchase of the new machine.

A. $440,678.

B. $480,000.

C. $521,923.

D. $460,000.

Reference no: EM132064565

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