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Schmidt Inc,manufactures Inexpensive Cameras That Sell for $50

Question 62

Multiple Choice

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.

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