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Isaza Corporation Produces and Sells Two Products

Question 81

Multiple Choice

Isaza Corporation produces and sells two products. In the most recent month, Product U82U had sales of $28,000 and variable expenses of $13,440. Product P89W had sales of $18,000 and variable expenses of $7,260. And the fixed expenses of the entire company were $24,650. If the sales mix were to shift toward Product U82U with total sales remaining constant, the overall break-even point for the entire company:


A) would decrease.
B) would not change.
C) could increase or decrease.
D) would increase.

Correct Answer:

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