Walters Corporation Sells Radios for $50 Per Unit

question 43

Multiple Choice

Walters Corporation sells radios for $50 per unit.The fixed costs are $420,000 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 $100,000 and variable costs will be 50% of the selling price.The new break-even point in units is:

• A)21,000
• B)20,800
• C)20,600
• D)16,800

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Definitions:

Ballpark Estimate

An approximate calculation or rough assessment, often used in the early stages of planning or decision-making.

Ishikawa Diagram

A tool, also known as a fishbone diagram, used to identify and analyze the causes of a particular problem or effect.

Milestone Schedule

A plan that outlines the key milestones or significant points within a project’s timeline, providing a clear pathway to project completion.

Project Management Skills

The competencies, such as leadership, communication, and problem-solving, required to successfully lead and deliver projects.