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Question
Schmidt Inc, manufactures inexpensive cameras that sell for $50. Fixed costs are $720,000 and variable costs are $30.00 per unit. Schmidt can buy a newer production machine that will increase fixed costs by $14,400 per year but will increase variable costs by 10% per unit. What are the original and the new break-even points in this situation?
A. Original $43,200; New $36,720.
B. Original $36,000; New $36,720.
C. Original $36,000; New $42,353.
D. Original $36,000; New $43,200.
E. Original $24,000; New $41,506.
Answer
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Related questions
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Q:
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