Question: Answer the following question using the information below: Product X: Revenue $15.00 Variable cost 2.50 Product Y: Rduct evenue $25.00 Variable cost 10.00 Total Fixed

Answer the following question using the information below:

Product X: Revenue $15.00

Variable cost 2.50

Product Y: Rduct evenue $25.00

Variable cost 10.00

Total Fixed costs $50,000

If the sales mix shifts to one unit of Product X and two units of Product Y, then the breakeven point will _______

a) decrease

b) will be greater than the original breakeven point

c)stay the same

d) increase

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!