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Mullis Corp. manufactures DVDs that sell for $5.20. Fixed cost are $35,000 and variable costs...

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Accounting

Mullis Corp. manufactures DVDs that sell for $5.20. Fixed cost are $35,000 and variable costs are $3.80 per unit. Mullis can buy a newer production machine that will increase fixed costs by $12,500 per year, but will decrease by $ 0.50 per unit. What effect would the purchase of the machine have on Mullis' break-even point in units?

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