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:

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:

Quizplus · Accepted Answer

11eacbfc_c776_f315_8ffe_f1047e34032a_TB7552_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