Torri Inc.produces and sells two products.During the most recent month,Product C34M's sales were $25,000 and its variable expenses were $5,750.Product Y03Z's sales were $40,000 and its variable expenses were $9,850.The company's fixed expenses were $48,310.
Required:
a.Determine the overall break-even point for the company.Show your work!
b.If the sales mix shifts toward Product C34M with no change in total sales,what will happen to the break-even point for the company? Explain.

Question

Torri Inc.produces and sells two products.During the most recent month,Product C34M's sales were $25,000 and its variable expenses were $5,750.Product Y03Z's sales were $40,000 and its variable expenses were $9,850.The company's fixed expenses were $48,310. 
Required:
a.Determine the overall break-even point for the company.Show your work!
b.If the sales mix shifts toward Product C34M with no change in total sales,what will happen to the break-even point for the company? Explain.

Quizplus · Accepted Answer

The Answer of Torri Inc.produces and sells two products.During the most recent month,Product C34M's sales were $25,000 and its variable expenses were $5,750.Product Y03Z's sales were $40,000 and its variable expenses were $9,850.The company's fixed expenses were $48,310. 
Required:
a.Determine the overall break-even point for the company.Show your work!
b.If the sales mix shifts toward Product C34M with no change in total sales,what will happen to the break-even point for the company? Explain.

Torri IncProduces and Sells Two Products