Ingrum Corporation Produces and Sells Two Products

question 193

Multiple Choice

Ingrum Corporation produces and sells two products. In the most recent month, Product R38T had sales of $20,000 and variable expenses of $7,400. Product X08S had sales of $39,000 and variable expenses of $6,170. The fixed expenses of the entire company were $41,160.
-If the sales mix were to shift toward Product R38T with total sales remaining constant,the overall break-even point for the entire company:

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

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