Winrow Company Sells Radios for $50 Per Unit

Multiple Choice

Winrow Company sells radios for $50 per unit. The fixed costs are $315,000 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 $75,000 and variable costs will be 50% of the selling price. The new break-even point in units is:

A) 15,750
B) 15,600
C) 15,450
D) 12,600