Crown Company Produces and Sells Two Products The Break-Even Point for the Current Sales Mix Is 360

question 140

Multiple Choice

Crown Company produces and sells two products.The following monthly data are provided: $\begin{array}{lrr}&\text { Slicer }&\text {Chopper }\\\text { Unit selling price } & 10 & \$ 15 \\\text { Variable manufacturing costs } & 6 &9 \\\text { Variable selling and administrative costs } & 1 & 1 \\\text { Estimated unit sales per month } & 280 & 420\end{array}$
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?

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

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Definitions:

Situational Causes

Factors external to an individual that can influence behavior and outcomes in specific contexts.

Internal Explanations

Attributions that relate the causes of behavior to personal aspects such as traits, mood, abilities, or feelings.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Prejudice

Preconceived opinion or bias against an individual or group without sufficient knowledge, reason, or direct experience.