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Hooper Corporation Produces and Sells Two Models of Vacuum Cleaners

Question 116

Multiple Choice

Hooper Corporation produces and sells two models of vacuum cleaners, Standard and Deluxe. The company records show the following monthly data relating to these two products:
 Standard  Deluxe  Selling price per unit $150$165 Variable production costs $120$126 Variable selling expense per  unit $16$13 Expected monthly sales in  units 6001,200 Total monthly fixed cost  (common in both)  $15,000\begin{array} {| l | r | r | } \hline & \text { Standard } & \text { Deluxe } \\\hline \text { Selling price per unit } & \$ 150 & \$ 165 \\\hline \text { Variable production costs } & \$ 120 & \$ 126 \\\hline \begin{array} { l } \text { Variable selling expense per } \\\text { unit }\end{array} & \$ 16 & \$ 13 \\\hline \begin{array} { l } \text { Expected monthly sales in } \\\text { units }\end{array} & 600 & 1,200 \\\hline \begin{array} { l } \text { Total monthly fixed cost } \\\text { (common in both) }\end{array} & & \$ 15,000 \\\hline\end{array}


-The break-even in sales dollars for the expected sales mix is closest to which of the following?


A) $160,772.
B) $95,178.
C) $109,091.
D) $175,644.

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