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Mullis Corp. manufactures DVDs that sell for $5.10. Fixed costs are $42.000 and variable costs are $3.60 per unit Mullis can
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Answer #1

Answer :No Effect

Break-even point with old machine = $42,000/($5.10 - $3.60) = 28,000 units

Break-even point with new machine = ($42,000 + $8,400)/[$5.10 - ($3.60 - $0.30)] = 28,000 units

Since both scenario show same number of units the situation has no effect.

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