Flesch Corporation Produces and Sells Two Products

question 370

Multiple Choice

Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $27,520 and variable expenses of $6,880. Product Y45E had sales of $31,160 and variable expenses of $17,138. The fixed expenses of the entire company were $23,600. If the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company:

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