Camden Inc. produces and sells two products. During the most recent month, Product M21B's sales were $35,000 and its variable expenses were $14,350. Product Y79X's sales were $20,000 and its variable expenses were $7,650. The company's fixed expenses were $30,820.
Required:
a. Determine the overall break-even point for the company. Show your work!
b. If the sales mix shifts toward Product M21B with no change in total sales, what will happen to the break-even point for the company? Explain.

Question

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The Answer of Camden Inc. produces and sells two products. During the most recent month, Product M21B's sales were $35,000 and its variable expenses were $14,350. Product Y79X's sales were $20,000 and its variable expenses were $7,650. The company's fixed expenses were $30,820.
Required:
a. Determine the overall break-even point for the company. Show your work!
b. If the sales mix shifts toward Product M21B with no change in total sales, what will happen to the break-even point for the company? Explain.