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The Break-Even in Sales Dollars for the Expected Sales Mix

Question 364
Multiple Choice

The break-even in sales dollars for the expected sales mix is closest to which of the following? A) $160,772. B) $95,178. C) $109,091. D) $175,644.Total CM = (150 - 120 - 16)* 600 + (165 - 126 - 13)* 1,200 = $39,600.

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Q 365
If the expected monthly sales in units were divided equally between the two models (900 Standard and 900 Deluxe),where would the break-even level of sales be as compared to the expected sales mix? A) The same as with the expected sales mix. B) Higher than with the expected sales mix. C) Lower than with the expected sales mix. D) Cannot be determined with the available data.
Q 366
If sales decrease by 500 units in the next month,by how much would fixed expenses have to be reduced to maintain the current operating income? A) $7,500. B) $6,000. C) $2,000. D) $3,000.
Q 367
The company has an opportunity to secure a special order of 800 units if it is willing to drop the selling price on these units to $13.Costs of securing the special order would be $1,000.The special order would not affect the company's regular sales.If the special order is accepted,what will be the impact on the company's overall operating income? A) Increase $3,200. B) Increase $2,200. C) Increase $3,800. D) Remain the same.Incremental profit = 800 * (13 - 9)- 1,000 = $2,200 increase
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