Asked by Shawntay Williams on Jul 22, 2024
Verified
Roddam Corporation produces and sells two products.Data concerning those products for the most recent month appear below: 
The fixed expenses of the entire company were $41,970.If the sales mix were to shift toward Product K09E with total dollar 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.
Break-even Point
The point where total sales revenue is equal to total expenses, yielding neither profit nor loss.
Sales Mix
Sales mix is the proportion of different products or services that a business sells, impacting the overall profitability based on the differing margins of each item.
- Analyze the effects of a change in sales mix on the break-even point and net operating income.
Verified Answer
AC
Anahi CerdaJul 24, 2024
Final Answer :
A
Explanation : 
Since Product K09E has a lower contribution margin ratio, a shift in sales to that product would increase the break-even point of the entire company.
Since Product K09E has a lower contribution margin ratio, a shift in sales to that product would increase the break-even point of the entire company.
Learning Objectives
- Analyze the effects of a change in sales mix on the break-even point and net operating income.