LEM 5-28 Sales Mix: Commission Structure; Multiproduct Break-Even Analysis [LO5-9) roduces cutlery sets out of high-quality wood and steel. The company makes a stan- Card cutlery set and a deluxe set and sells them to retail department stores throughout the country the standard set sells for $60, and the deluxe set sells for $75. The variable expenses associat with each set are given below. Standard Deluxe $15.00 $30.00 Sales commissions (15% of sales price) . . . . . . . $9.00 $11.25 The company'sfixed expenses each month are $105,000 Administrative . . $63,000 ons are paid on a commission basis to encourage them to be aggressive in their sales Mary Parsons, the financial vice president, watches sales commissions carefully and has Salespers efforts. noted that they have risen steadily over the last year. For this reason, she was shocked to find that even though sales have increased, profits for the current month-May-are down substantially from April. Sales, in sets, for the last two months are given below: Standard Deluxe Total April May 4,000 2,000 6,000 1,000 5,000 6,000