Stanger Inc. produces and sells two products. Data concerning those products for the most recent month appear below: Fixed expenses for the entire company were $17,570.
Required:
a. Determine the overall break-even point for the company. Show your work!
b. If the sales mix shifts toward Product N16S with no change in total sales, what will happen to the break-even point for the company? Explain.

Question

Stanger Inc. produces and sells two products. Data concerning those products for the most recent month appear below:  Fixed expenses for the entire company were $17,570.
Required:
a. Determine the overall break-even point for the company. Show your work!
b. If the sales mix shifts toward Product N16S with no change in total sales, what will happen to the break-even point for the company? Explain.

Quizplus · Accepted Answer

The Answer of Stanger Inc. produces and sells two products. Data concerning those products for the most recent month appear below:  Fixed expenses for the entire company were $17,570.
Required:
a. Determine the overall break-even point for the company. Show your work!
b. If the sales mix shifts toward Product N16S with no change in total sales, what will happen to the break-even point for the company? Explain.