Ramirez Corporation Sells Two Types of Computer Hard Drives

question 29

Multiple Choice

Ramirez Corporation sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus) . Q-Drive has variable costs per unit of $90 and a selling price of $150. Q-Drive Plus has variable costs per unit of $105 and a selling price of $195. Ramirez's fixed costs are $891,000. How many units of Q-Drive would be sold at the break-even point?

• A) 3,300
• B) 4,455
• C) 11,000
• D) 7,700

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Definitions:

Dissolved

Dissolved, in a general context, means to have been disintegrated or dispersed into a liquid to form a solution, or to cease to exist as a distinct entity.

Nonprogrammed Decision

Decisions that are made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization.

Alternative Solutions

Different options or strategies that can be pursued to solve a problem or achieve a specific goal.

Condition Of Uncertainty

A situation where there is a lack of certain knowledge or predictability about future events, often discussed in decision-making contexts.