Kuhner Corporation produces and sells two products. Data concerning those produc
ID: 2348265 • Letter: K
Question
Kuhner Corporation produces and sells two products. Data concerning those products for the most recent month appear below:Product B64P
Product I00E
Sales
$10,000
$46,000
Variable expenses
2,500
15,420
Fixed expenses for the entire company were $33,100.
If the sales mix were to shift toward Product B64P with total dollar sales remaining constant, the overall break-even point for the entire company:
A) would not change.
B) would decrease.
C) would increase.
D) could increase or decrease.
Please explain your answer.
Explanation / Answer
Kuhner Corporation produces and sells two products. Data concerning those products for the most recent month appear below: Product B64P Product I00E Sales $10,000 $46,000 Variable expenses 2,500 15,420 Fixed expenses for the entire company were $33,100. If the sales mix were to shift toward Product B64P with total dollar sales remaining constant, the overall break-even point for the entire company: C) would increase.
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