Hi-Tech Incorporated produces two different products with the following monthly data.

Required

a. If the sales mix shifts to 50 percent Cell and 50 percent GPS, would the breakeven point in units increase or decrease? Explain. Detailed calculations are not necessary, but may be helpful in confirming your answer.

b. Go back to the original projected sales mix. If the sales mix shifts to 80 percent Cell and 20 percent GPS, would the break-even point in units increase or decrease? Explain. Detailed calculations are not necessary, but may be helpful in confirming your answer.

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Cell GPS Total Selling price per unit $100 $400 Variable cost per unit $ 40 $240 Expected unit sales 21,000 9,000 30,000 Sales mix Fixed costs 70% 30% 100% $1,800,000