Dietrick Corporation Produces and Sells Two Products

question 33

Multiple Choice

Dietrick Corporation produces and sells two products. Data concerning those products for the most recent month appear below: Fixed expenses for the entire company were $42,550.
If the sales mix were to shift toward Product B32L with total sales remaining constant, the overall break-even point for the entire company:

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

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Definitions:

Unrecorded Expense

An expense that has been incurred but not yet documented or reported in the accounting records.

Unrecorded Revenue

Revenue that has been earned but has not yet been documented in the accounting records.

Revenues

The income generated from normal business operations, often from the sale of goods and services to customers.

Expenses

Costs incurred by a business in the process of earning revenues.