Gilpatric Corporation Produces and Sells Two Products

question 97

Multiple Choice

Gilpatric Corporation produces and sells two products. In the most recent month, Product Q71M had sales of $28,000 and variable expenses of $7,840. Product V04P had sales of $49,000 and variable expenses of $27,580. The fixed expenses of the entire company were $34,630. 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.

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Definitions:

Tapeworms

Parasitic flatworms that live in the digestive tract of vertebrates, absorbing nutrients from the host's intestine.

Annelids

A phylum of segmented worms that includes earthworms, leeches, and their relatives, characterized by a segmented body and a coelom.

Segmentation

The division of a body or a structure into repetitive segments, as seen in organisms like annelids, arthropods, and vertebrates.

Locomotion

The ability or act of moving from place to place, a fundamental biological activity allowing organisms to interact with their environment.