Hargenrader Inc. produces and sells two products. During the most recent month, Product P02S's sales were $24,000 and its variable expenses were $7,920. Product O50U's sales were $41,000 and its variable expenses were $14,180. The company's fixed expenses were $40,350.
Required:
a. Determine the overall break-even point for the company in total sales dollars. Show your work!
b. If the sales mix shifts toward Product P02S with no change in total sales, what will happen to the break-even point for the company? Explain.

Question

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The Answer of Hargenrader Inc. produces and sells two products. During the most recent month, Product P02S's sales were $24,000 and its variable expenses were $7,920. Product O50U's sales were $41,000 and its variable expenses were $14,180. The company's fixed expenses were $40,350.
Required:
a. Determine the overall break-even point for the company in total sales dollars. Show your work!
b. If the sales mix shifts toward Product P02S with no change in total sales, what will happen to the break-even point for the company? Explain.