Answer the following questions using the information below:
The following information is for Barnett Corporation:

-If the sales mix shifts to one unit of Product X and two units of Product Y, then the breakeven point will:
A)increase
B)stay the same
C)decrease
D)be indeterminable

Question

Answer the following questions using the information below:
The following information is for Barnett Corporation:
   
-If the sales mix shifts to one unit of Product X and two units of Product Y, then the breakeven point will:
A)increase 
B)stay the same 
C)decrease 
D)be indeterminable

Quizplus · Accepted Answer

The breakeven point will decrease if the sales mix shifts to a combination that includes more of the product with a higher contribution margin, assuming Product Y has a higher contribution margin than Product X.

Answer the Following Questions Using the Information Below