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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

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:

Standard Deluxe
Selling price per unit $150 $165
Variable production costs $120 $126
Variable selling expense per unit $16 $13
Expected monthly sales in units 800 1,200
Total monthly fixed cost (common in both) $15,000

Assuming the sales mix remains constant, how many units of each model must the firm sell in order to break even?

  • 360 standard and 540 deluxe

  • 440 standard and 660 deluxe

  • 284 standard and 425 deluxe

  • 536 standard and 289 deluxe

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