Walters Corporation Sells Radios for $50 Per Unit

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