Q5. (Dersyn 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             600                              1200 total monthly fixed cost (common to both)       $15,000 Calculate the break-even in sales dollars for the expected sales mix. Show all your calculations.

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A:

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Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.