Walters Corporation Sells Radios for $50 Per Unit

question 181

Multiple Choice

Walters Corporation sells radios for $50 per unit. The fixed costs are $525000 and the variable costs are 60% of the selling price. As a result of new automated equipment it is anticipated that fixed costs will increase by $125000 and variable costs will be 50% of the selling price. The new break-even point in units is:

• A) 26250
• B) 26000
• C) 25750
• D) 21000

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Definitions:

Selective Attention

The cognitive process of focusing on one particular object or task in the presence of multiple stimuli or distractions.

Cognitive Neuroscience

The study of brain mechanisms underlying cognitive processes, such as perception, memory, and language.

Dream Content

Pertains to the images, thoughts, and emotions experienced during sleep.

Consciousness

The state of being awake and aware of one's surroundings, thoughts, feelings, and self.