Question
Standlar Company makes and sells wireless speakers. The price of the standard model is $360 and its variable expenses are $210. The price of the
Standlar Company makes and sells wireless speakers. The price of the standard model is $360 and its variable expenses are $210. The price of the deluxe model is $500 and its variable expenses are $300. The price of the superior model is $1,600 and its variable expense per unit is $600. Total fixed expenses are $300,000. Generally, Standlar sells 8 standard models and 4 deluxe models for every superior model sold. What would happen to the break-even sales revenue if Standlar's sales mix changed to 9 standard models, 4 deluxe models, and 1 superior model sold?
a. Break-even sales revenue would increase.
b. Break-even sales revenue would not change.
c. Break-even sales revenue would decrease.
d. The change in the break-even sales revenue cannot be predicted from the given information.
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