Winrow Company Sells Radios for $50 Per Unit

question 64

Multiple Choice

Winrow Company sells radios for $50 per unit. The fixed costs are $315,000 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 $75,000 and variable costs will be 50% of the selling price. The new break-even point in units is:

• A) 15,750
• B) 15,600
• C) 15,450
• D) 12,600

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Definitions:

Law Of Independent Assortment

The Mendelian principle that genes controlling different traits are inherited independently of one another.

Mendel

Gregor Mendel, a 19th-century scientist and Augustinian monk known as the father of genetics for his work on the inheritance of traits in pea plants which established the laws of Mendelian inheritance.

Classificatory System

An organized method for categorizing and grouping entities based on common characteristics or relationships.

Linnaeus

Carl Linnaeus was an 18th-century Swedish botanist, physician, and zoologist who laid the foundations for the modern biological naming scheme of binomial nomenclature.