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Henning Corporation produces and sells two models of hair dryers, Standard and Deluxe. The company has provided the following data relating to these two products:

Henning Corporation produces and sells two models of hair dryers, Standard and Deluxe. The company has provided the following data relating to these two products:

Standard

Deluxe

Selling price..............................................

$40

$55

Variable production cost..............................

$10

$16

Variable selling and administrative expense......

$15

$12

Expected monthly sales in units....................

600

1,200

The company's total monthly fixed expense is $13,800.

If the actual monthly sales in units were divided equally between the two models (900 Standard and 900 Deluxe) and nothing else changed, the break-even level of sales would be:

a.

lower than with the expected sales mix.

b.

higher than with the expected sales mix.

c.

the same as with the expected sales mix.

d.

cannot be determined with this information

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