Produces and sells two produtcs-standard and deluxe

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Lincoln Corporation produces and sells two produtcs : 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 reveue 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?

Reference no: EM13746426

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