Reference: 08-13
Hooper Corporation Produces and Sells Two Models of Vacuum

Reference: 08-13
Hooper 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: $$\begin{array} { | l | l | l | l | } \hline & \text { Standard } & & \text { Delwxe } \\\hline \text { Selling price per unit } & \$ 150 & & \$ 165 \\\hline \text { Variable production costs } & 120 & & 126 \\\hline \text { Variable selling expense per unit } & 16 & & 13 \\\hline \text { Expected monthly sales in units } & 600 && 1,200 \\\hline \text { Total monthly fixed cost } & & \$ 15,000 & \\\hline\end{array}$$
-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) higher than with the expected sales mix.
B) lower than with the expected sales mix.
C) the same as with the expected sales mix.
D) cannot be determined with the available data.

Correct Answer:

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