Walters Corporation Sells Radios for $50 Per Unit

Multiple Choice

Walters Corporation sells radios for $50 per unit.The fixed costs are $420,000 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 $100,000 and variable costs will be 50% of the selling price.The new break-even point in units is:

A) 21,000
B) 20,800
C) 20,600
D) 16,800