7. Break-even analysis and sales mix

The following table summarizes the relevant sales and cost data of power adapters and phone chargers for Benson Company, a small supply company headquartered in Detroit,MI.

Products	Unit Selling Price	Unit Variable Cost	Sales Mix
Power Adapters	$10.00	$5.20	70%
Phone Chargers	$16.40	$9.60	30%

Benson Company has estimated annual fixed costs of $285,390. How many units of the overall enterprise product (E) does the firm need to sell for its income from operations to break even?

	54,350 units
	51,350 units
	52,850 units
	55,850 units

At the break-even point, how many power adapters (in units) are produced and sold?

	15,855 units
	39,095 units
	36,995 units
	16,755 units

Benson Company is aware of changing market conditions that may affect its sales mix. The sales staff believes these new conditions will lead to firm's sales mix being roughly even (50% power adapters and 50% phone chargers). What effect will that likely have on the firm's break-even point for total units sold?

	The break-even point will decrease.
	The break-even point will increase.