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:

Categorical Proposition

A statement that asserts or denies that all or some of the members of one category are included in another.

Singular Term

A term that refers to one and only one object.

Refers

Refers pertains to the action of mentioning or alluding to something.

Categorical Propositions

Statements that assert or deny that all or some members of one category are included in another category.