Veren Inc.produces and sells two products.During the most recent month,Product F73A's sales were $27,000 and its variable expenses were $9,450.Product L75P's sales were $14,000 and its variable expenses were $5,310.The company's fixed expenses were $21,060.
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 F73A 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 Veren Inc.produces and sells two products.During the most recent month,Product F73A's sales were $27,000 and its variable expenses were $9,450.Product L75P's sales were $14,000 and its variable expenses were $5,310.The company's fixed expenses were $21,060.
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 F73A with no change in total sales,what will happen to the break-even point for the company? Explain.

Veren IncProduces and Sells Two Products