Mix Masters, Inc The Breakeven Sales for Mix Masters, Inc

Mix Masters, Inc., currently sells Product A and Product B in the following annual sales mix.For the coming year the company expects that sales of Product A will increase by 50% and sales of Product B will decrease by 33.3%.Current contribution margin ratios will remain unchanged for next year as will total fixed costs of $700,000. $$\begin{array} { l c c c } & \text { Current Sales Mix } & \text { Sales Mix Shift } & \text { CM Ratio } \\\text { Product A } & \$ 40,000 & \$ 60,000 & 25 \% \\\text { Product B } & \$ 60,000 & \$ 40,000 & 50 \% \\\text { Total Sales } & \$ 100,000 & \$ 100,000 &\end{array}$$ The breakeven sales for Mix Masters, Inc., before and after the shift in sales mix is:

A) Before $2,800,000; After $1,400,000.
B) Before $2,000,000; After $1,750,000.
C) Before $1,750,000; After $2,000,000.
D) Before $1,400,000; After $2,800,000.