Pepsi Inc. is considering buying new equipment that would increase monthly fixed costs from $128,000...
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Pepsi Inc. is considering buying new equipment that would increase monthly fixed costs from $128,000 to $155,000 and would decrease the current variable cost of $60 by $10 per unit. The selling price of $100 is not expected to change. Pepsi Incs current break-even sales are $320,000 and current break-even units are 3,200. If Pepsi Inc. purchases this new equipment, the revised break-even point in units would be:
Decrease by 9,600
Decrease by 100
Increase by 9,600
Increase by 12,800
Increase by 100
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