If the sales mix were to shift toward Product M06M with total sales remaining constant, the overall break-even point for the entire company:
A)would increase.
B)could increase or decrease.
C)would not change.
D)would decrease.

Question

Quizplus · Accepted Answer

If the sales mix shifts toward Product M06M and assuming Product M06M has a higher contribution margin than other products, the overall break-even point would decrease because the company would need to sell fewer units to cover fixed costs.

If the Sales Mix Were to Shift Toward Product M06M