Elk CoManufactures a Product That Sells for $12 Per Unit

Essay

Elk Co.manufactures a product that sells for $12 per unit.Total fixed costs are $96,000 and variable costs are $7 per unit.Elk can buy a newer production machine that will increase total fixed costs by $22,800 and decrease variable costs by $0.40 per unit.What effect would the purchase of the new machine have on Elk's break-even point in units?