TechRus Inc. produces and sells two products. During the most recent month, Prod

Question

TechRus Inc. produces and sells two products. During the most recent month, Product F73A's sales were $27,000 and its variable expenses were $9,450. Product L75P's sales were $14,000 and its variable expenses were $5,310. The company's fixed expenses in total were $21,060.

a. Compute the overall break-even point for the company in sales dollars. Show your work.

b. If the sales mix shifts toward Product F73A with no change in total sales, what will happen to the break-even point for the company? Explain.

Explanation / Answer

a. Compute the overall break-even point for the company in sales dollars. Show your work.

Contribution margin for F73A: 27,000

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