Vaughn Manufacturing sells radios for $50 per unit. The fixed costs are $425000 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 $115000 and variable costs will be 50% of the selling price. The new break-even point in units is: 21600 21950 17000 21250
Vaughn Manufacturing sells radios for $50 per unit. The fixed costs are $425000 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 $115000 and variable costs will be 50% of the selling price. The new break-even point in units is: 21600 21950 17000 21250
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vaughn Manufacturing sells radios for $50 per unit. The fixed costs are $425000 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 $115000 and variable costs will be 50% of the selling price. The new break-even point in units is:
21600
21950
17000
21250
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