Break-even in sales dollars for the expected sales mix


Problem: Use any data to complete the following problem:

Douglas Corporation produces and sells two models of vacuum cleaners, Standard and Deluxe. Company records show the following data relating to these two products:

Standard    Deluxe:
Selling price per unit
Variable production costs per unit
Variable selling and admin. expense per unit
Expected monthly sales in units

The company's total monthly fixed expense is $XXX.

1. The break-even in sales dollars for the expected sales mix is closest to:

2. If the expected monthly sales in units were divided equally between the two models (XXX Standard and YYY Deluxe), the break-even level of sales would be:

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Accounting Basics: Break-even in sales dollars for the expected sales mix
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