“Douglas Corporation produces and sells two models of vacuum cleaners, Standard and Deluxe. The company records show the following monthly data relating to these two products: Standard Deluxe Selling price per unit $140 $155 Variable production costs per unit 110 116 Variable selling expense per unit 15 12 Expected monthly sales in units 600 1,200 Total monthly fixed cost $15,000 80. If the expected monthly sales in units were divided equally between the two models (900 Standard and 900 Deluxe), the break-even level of sales would be: a. the same as with the expected sales mix. b. higher than with the expected sales mix. c. lower than with the expected sales mix. d. cannot be determined with the available data.”,”2The break-even point in Sales $: CM = Sales prices – VCCM from Standard 140 – 125 = 15 /unitCM from Deluxe 155 – 128 = 27 /unitThen if the sales mix would increase the standard
the BE level of sales will be higher than BE sales with the expected sales mix.”