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 |
$140 |
$155 |
|
Variable production costs per unit |
$110 |
$116 |
|
Variable selling and admin. expense per unit |
$15 |
$12 |
|
Expected monthly sales in units |
600 |
1,200 |
The company”s total monthly fixed expense is $15,000.
The break even in sales dollars for the expected sales mix is closest to:
A) $140,000
B) $85,000
C) $107,000
D) $98,000