Waterway Industries sells radios for $50 per unit. The fixed costs are $625000 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 $105000 and variable costs will be 50% of the selling price. The new break-even point in units is:

29,200 units

Explanation:

The computation of new break even point is given below:-

= Fixed Cost ÷ Contribution per unit

Fixed cost

= $625,000 + $105,000

= $730,000

Variable cost per unit = 50% of selling price

= $25

So, the break even point = $730,000 ÷ 25

= 29,200 units

Therefore for calculating the break even point we simply divide the $730,000 from 25 per unit variable cost.

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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