28 ChangesinSalesMix Hi TechIncorporatedproducestwodifferentproductswiththefollowingmonthlydata(thesedataarethesameasthepreviousexercise) 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 70 percent 30 percent 100 percent Fixed costs $1,800,000 Required Ifthesalesmixshiftsto50percentCelland50percentGPS,wouldthebreak evenpointinunitsincreaseordecrease Explain (Detailedcalculationsarenotnecessarybutmaybehelpfulinconfirmingyouranswer ) Gobacktotheoriginalprojectedsalesmix Ifthesalesmixshiftsto80percentCelland20percentGPS,wouldthebreak evenpointinunitsincreaseordecrease Explain (Detailedcalculationsarenotnecessarybutmaybehelpfulinconfirmingyouranswer ) 28 CVPSensitivityAnalysis(SingleProduct) BridgeportCompanyhasmonthlyfixedcoststotaling$200,000andvariablecostsof$40perunit Eachunitofproductissoldfor$50 Bridgeportexpectstosell30,000unitseachmonth(thisisthebasecase) Required Foreachoftheindependentsituationsinrequirements 2 through 4 ,assumethatthenumberofunitssoldremainsat30,000 Prepareacontributionmarginincomestatementforthebasecase Refertothebasecase Whatwouldtheoperatingprofitbeiftheunitsalespriceincreases10percent Refertothebasecase Whatwouldtheoperatingprofitbeiftheunitvariablecostdecreases20percent Refertothebasecase Whatwouldtheoperatingprofitbeiftotalfixedcostsdecrease20percent

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28.ChangesinSalesMix. Hi-TechIncorporatedproducestwodifferentproductswiththefollowingmonthlydata(thesedataarethesameasthepreviousexercise). 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

28.ChangesinSalesMix.Hi-TechIncorporatedproducestwodifferentproductswiththefollowingmonthlydata(thesedataarethesameasthepreviousexercise).

	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	70 percent	30 percent	100 percent
Fixed costs			$1,800,000

Required:

Ifthesalesmixshiftsto50percentCelland50percentGPS,wouldthebreak-evenpointinunitsincreaseordecrease?Explain.(Detailedcalculationsarenotnecessarybutmaybehelpfulinconfirmingyouranswer.)
Gobacktotheoriginalprojectedsalesmix.Ifthesalesmixshiftsto80percentCelland20percentGPS,wouldthebreak-evenpointinunitsincreaseordecrease?Explain.(Detailedcalculationsarenotnecessarybutmaybehelpfulinconfirmingyouranswer.)

28.CVPSensitivityAnalysis(SingleProduct).BridgeportCompanyhasmonthlyfixedcoststotaling$200,000andvariablecostsof$40perunit.Eachunitofproductissoldfor$50.Bridgeportexpectstosell30,000unitseachmonth(thisisthebasecase).

Required:

Foreachoftheindependentsituationsinrequirements2through4,assumethatthenumberofunitssoldremainsat30,000.

Prepareacontributionmarginincomestatementforthebasecase.
Refertothebasecase.Whatwouldtheoperatingprofitbeiftheunitsalespriceincreases10percent?
Refertothebasecase.Whatwouldtheoperatingprofitbeiftheunitvariablecostdecreases20percent?
Refertothebasecase.Whatwouldtheoperatingprofitbeiftotalfixedcostsdecrease20percent?