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Lever Products (LP)is Considering the Elimination of a Press Machine

Question 46

Multiple Choice

Lever Products (LP) is considering the elimination of a press machine.The new press machine should reduce depreciation expenses by $80,000 annually.If LP's total fixed costs were $420,000 last year,what would LP's new break-even point in units if the contribution margin is 3.75 per unit?


A) 68,000 units
B) 90,667 units
C) 100,800 units
D) 50,667 units

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