Question: This information is the same as in the previous question. Tech Solutions Inc. produces two different products with the following monthly data for October: Digital

This information is the same as in the previous question. Tech Solutions Inc. produces two different products with the following monthly data for October:

Digital

Cameras

Tripods

Total

Selling price per unit

$300

$100

Variable cost per unit

$240

$ 60

Expected unit sales

28,000

7,000

35,000

Sales mix

80%

20%

100%

Fixed costs

$700,000

If the sales mix shifts to 50 percent cameras and 50 percent tripods, what happens to the break-even point in units?

It decreases.
It increases.
There is not enough information to answer this question.
It is not affected.

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