Roddam Corporation produces and sells two products.Data concerning those products for the most recent month appear below:
The fixed expenses of the entire company were $41,970.If the sales mix were to shift toward Product K09E with total dollar sales remaining constant,the overall break-even point for the entire company:
A) would increase.
B) could increase or decrease.
C) would not change.
D) would decrease.

Question

Roddam Corporation produces and sells two products.Data concerning those products for the most recent month appear below:
 The fixed expenses of the entire company were $41,970.If the sales mix were to shift toward Product K09E with total dollar sales remaining constant,the overall break-even point for the entire company:
A) would increase. 
B) could increase or decrease. 
C) would not change. 
D) would decrease.

Quizplus · Accepted Answer

11ea7761_1865_0c92_81a5_ab608746556e_TB2580_00 Since Product K09E has a lower contribution margin ratio, a shift in sales to that product would increase the break-even point of the entire company.

Roddam Corporation Produces and Sells Two Products