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Lincoln Corporation produces and sells two products: Standard and Deluxe. The info on the two products sold for the last month is given below. The common fixed cost is $15,000.
Standard: Sales: $45,000 Variable Expenses: $36,000
Deluxe: Sales: $33,000 Variable Expenses: $16,500
Suppose total sales revenue for the coming month stays the same, but the sales (revenue) mix changes such that Deluxe increases by 20% (i.e. additional 20% to current %) and Standard decreases by 20% from the present levels. What will be the impact of this change on the break even sales revenue of Lincoln?