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Ingrum Corporation Produces and Sells Two Products

Question 294

Multiple Choice

Ingrum Corporation produces and sells two products. In the most recent month, Product R38T had sales of $20,000 and variable expenses of $7,400. Product X08S had sales of $39,000 and variable expenses of $6,170. The fixed expenses of the entire company were $41,160.If the sales mix were to shift toward Product R38T with total sales remaining constant, the overall break-even point for the entire company:


A) would not change.
B) would increase.
C) would decrease.
D) could increase or decrease.

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