Solved

Crown Company Produces and Sells Two Products A)$3 Decrease
B)$5 Increase
C)$2 Decrease
D)$2 Increase

Question 121

Multiple Choice

Crown Company produces and sells two products. The following monthly data are provided: 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?
 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}


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

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