YPad Is Priced at $500 Per Unit and Has the Following

question 11

Multiple Choice

YPad is priced at $500 per unit and has the following cost structure: factory variable manufacturing costs per unit $100; factory fixed costs total $1,000,000; sales commissions are 10% of selling price; delivery expenses to retail stores are 5% of selling price; management salaries total $3,000,000; head office rent $200,000 per year; interest on bank loan is $50,000 per month. What is the breakeven point in units for the YPad?

• A) 2,769,231 units.
• B) 6,461,538
• C) 6,538,462
• D) 7,076,923
• E) 7,384,615

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Definitions:

Job Enrichment

A method of motivating employees by providing them with opportunities for increased responsibility and growth within their roles.

Turnover Rates

The ratio or percentage of employees leaving a company during a certain period, which could indicate the overall health of the organization or its work environment.

Autonomy

The degree to which a job provides an employee with the discretion and independence to schedule their work and determine the procedures to be used in carrying it out.

Procedural Justice

The perception of fairness in the processes and methods used to make decisions and allocate resources.