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Crown Company Produces and Sells Two Products The Break-Even Point for the Current Sales Mix Is 360

Question 125

Multiple Choice

Crown Company produces and sells two products.The following monthly data are provided:  Slicer  Chopper  Unit selling price $10$15 Variable manufacturing costs 69 Variable selling and  administrative costs 11 Estimated unit sales per month 280420\begin{array} { | l | r | r | } \hline & \text { Slicer } & \text { Chopper } \\\hline \text { Unit selling price } & \$ 10 & \$ 15 \\\hline \text { Variable manufacturing costs } & 6 & 9 \\\hline \begin{array} { l } \text { Variable selling and } \\\text { administrative costs }\end{array} & 1 & 1 \\\hline \text { Estimated unit sales per month } &280 & 420 \\\hline\end{array} The break-even point for the current sales mix is 360 units (144 Slicer models and 216 Chopper models) .What would be the impact on profit if 360 units are sold but 145 Slicer models are sold instead of 144?


A) $3 decrease
B) $5 increase
C) $2 decrease
D) $2 increase

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