Forrester Company is considering buying new equipment that wouldincrease monthly fixed costs from $4
Forrester Company is considering buying new equipment that wouldincrease monthly fixed costs from $432,000 to $450,000 and woulddecrease the current variable costs of $70 by $10 per unit. Theselling price of $120 is not expected to change. Forrester’scurrent break-even sales are $1,080,000 and current break-evenunits are 9,000. If Forrester purchases this new equipment, therevised break-even point in dollars would be: . . .
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