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Standlar Company Makes Wireless Speakers

Question 10

Multiple Choice

Standlar Company makes wireless speakers.The standard model price is $360 and variable expenses are $210.The deluxe model price is $500 and variable expenses are $300.The superior model price is $1,600 and 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 is the number of deluxe models sold at break-even?


A) 250
B) 500
C) 400
D) 100
E) 1,000

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