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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?
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360 standard and 540 deluxe
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440 standard and 660 deluxe
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284 standard and 425 deluxe
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536 standard and 289 deluxe
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