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problem: Acme Corporation manufactures a product that sells for $12/unit. Total fixed costs are dollar 96,000 & variable costs are $7 per unit. Acme can purchase a newer production machine that will raise total fixed costs by $22,800 but variable costs will be reduced by $0.40 per unit. What effect would the buy of new machine have on Acme's break-even point in units?

Cost Accounting, Accounting

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