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:

Engagement

The emotional and psychological commitment an employee has towards their organization and its goals.

Employee Attitude

Workers' perspectives, feelings, and behaviors towards their job, colleagues, and the organization.

Alignment Strategy

Alignment strategy refers to the process of ensuring that the goals, processes, and activities of an organization are in sync to achieve its overall objectives.

Performance Metrics

Quantitative and qualitative measures used to evaluate the effectiveness, efficiency, and success of an individual's, team's, or organization's activities.