Froio Corporation produces and sells two products.Data concerning those products for the most recent month appear below: Fixed expenses for the entire company were $26,570. If the sales mix were to shift toward Product M06M with total sales remaining constant,the overall break-even point for the entire company:

Question

Froio Corporation produces and sells two products.Data concerning those products for the most recent month appear below:  Fixed expenses for the entire company were $26,570. If the sales mix were to shift toward Product M06M with total sales remaining constant,the overall break-even point for the entire company:

Quizplus · Accepted Answer

If the sales mix were to shift toward Product M06M, which has a higher contribution margin per unit than Product X93F, the overall break-even point for the entire company would decrease. This is because selling more of Product M06M would increase the overall contribution margin, offsetting the fixed expenses and resulting in a lower break-even point.

Froio Corporation Produces and Sells Two Products