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kherson [118]
3 years ago
9

Walters Corporation sells radios for $50 per unit. The fixed costs are $525,000 and the variable costs are 60% of the selling pr

ice. As a result of new automated equipment, it is anticipated that fixed costs will increase by $125,000 and variable costs will be 50% of the selling price. The new break-even point in units is:
Business
2 answers:
Elena-2011 [213]3 years ago
6 0

Answer:

26,000

Explanation:

Given that,

Selling price = $50 per unit

Fixed costs = $525,000

Variable costs:

= 60% of the selling price

= 0.6 × $50

= $30 per unit

New fixed cost:

= $525,000 + $125,000

= $650,000

New variable costs:

= 50% of the selling price

= 0.5 × $50

= $25 per unit

Contribution margin per unit:

= Selling price - Variable cost

= $50 - $25

= $25

New break-even point in units:

= New fixed cost ÷ Contribution margin per unit

= $650,000 ÷ $25

= 26,000

anyanavicka [17]3 years ago
3 0

Answer:

26,000 units  

Explanation:

The computation of the new break even point in units is shown below:

= (Fixed expenses ) ÷ (Contribution margin per unit)  

where,  

Fixed cost = $525,000 + $125,000 = $650,000

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $50 - $25

= $25

So, the break even point in units is

= $650,000 ÷ $25

= 26,000 units  

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Answer:

arbitrage

Explanation:

Arbitrage can be defined as an act or process of buying buying and selling an asset simultaneously. Purchasing IBM stock and selling it for 5 dollar more simultaneously is an example of arbitrage. Such a seller is going to cash in on the price difference in buying and selling this stock. It is simply taking advantage of the difference in price that is gotten from buying and reselling this stock at 5dollars.

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A financially-responsible person reacts quickly to problems. True or False
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Answer:

TRUE

Explanation:

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5 0
3 years ago
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True [87]

Walter Co. is a manufacturer because it uses raw materials, and has a stock of merchandise inventory, work-in-progress inventory, and finished goods inventory. The current assets of Walter Co. will be:

Current Assets:

Cash                                                          6,000

Inventories

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A manufacturing company is a company that takes in raw materials processes the raw materials and then sells the finished goods manufactured in the market. So the current assets section of the balance sheet of Walter Co. is given which will be written on the right side of the balance sheet.

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Targeted advertising, or those customized ones that follow you across the internet containing products that you might really desire, have a lot of negative connotations: they're creepy, misleading, and possibly humiliating, among other things.

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