Crumbley Inc. produces and sells two products. Data concerning those products for the most recent month appear below: Fixed expenses for the entire company were $42,760.
Required:
a. Determine the overall break-even point for the company in total sales dollars. Show your work!
b. If the sales mix shifts toward Product W43J with no change in total sales, what will happen to the break-even point for the company? Explain.

Question

Crumbley Inc. produces and sells two products. Data concerning those products for the most recent month appear below:  Fixed expenses for the entire company were $42,760.
Required:
a. Determine the overall break-even point for the company in total sales dollars. Show your work!
b. If the sales mix shifts toward Product W43J with no change in total sales, what will happen to the break-even point for the company? Explain.

Quizplus · Accepted Answer

The Answer of Crumbley Inc. produces and sells two products. Data concerning those products for the most recent month appear below:  Fixed expenses for the entire company were $42,760.
Required:
a. Determine the overall break-even point for the company in total sales dollars. Show your work!
b. If the sales mix shifts toward Product W43J with no change in total sales, what will happen to the break-even point for the company? Explain.