If the sales mix were to shift toward Product Q71M 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 towards Product Q71M, which has a higher contribution margin than other products, the overall break-even point for the entire company would decrease. This is because the higher contribution margin would cover the fixed costs with fewer sales needed, resulting in a lower break-even point. Therefore, the correct answer is option D.

If the Sales Mix Were to Shift Toward Product Q71M