Rusty Co Sells Two Products, X and Y

question 94

Multiple Choice

Rusty Co. sells two products, X and Y. Last year, Rusty sold 5,000 units of X and 35,000 units of Y. Related data are: Assuming that last year's fixed costs totaled $675,000. What was Rusty Co.'s break-even point in units?

• A) 16,875 units
• B) 30,100 units
• C) 30,000 units
• D) 11,250 units

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Definitions:

Mechanistic Organization

A mechanistic organization is a highly structured, rigid, and bureaucratic type of organization which operates under a strict hierarchy and tight control.

High Turnover

The rapid rate at which an organization loses and must replace its employees, often indicating issues with employee satisfaction or engagement.

Delegating Decision Making

The process by which authority to make certain decisions is transferred from one individual, often a manager, to another person or group.

Integration

The process of combining separate parts or elements into a whole, often used in the context of systems, businesses, and technologies to improve efficiency or coherence.