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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