Schlender Corporation produces and sells two products. In the most recent month, Product L40O had sales of $22,000 and variable expenses of $8,580. Product Y27L had sales of $49,000 and variable expenses of $17,690. The fixed expenses of the entire company were $43,950.
-If the sales mix were to shift toward Product L40O with total dollar sales remaining constant,the overall break-even point for the entire company:

Question

Quizplus · Accepted Answer

If the sales mix shifts towards a product with a higher contribution margin, the overall break-even point will increase because the contribution margin per unit is higher, meaning the company will need to sell fewer units to cover its fixed costs.

Schlender Corporation Produces and Sells Two Products