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Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales...

Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $25,420 and variable expenses of $7,626. Product Y45E had sales of $30,030 and variable expenses of $18,018. The fixed expenses of the entire company were $19,000. If the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company

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Answer #1
C90B Y45E Total
Amount % Amount % Amount %
Sales revneue 25420 100% 30030 100% 55450 100%
Variable cost 7626 30% 18018 60% 25644 46.25%
Contribution margin 17794 70% 12012 40% 29806 53.7500%
Fixed cost 19000 34.26%
Net income 10806 19.49%
As the sales mix shifts towards C90B which is yielding higher CM as compared to weighted average.
Thus, the profits will rise for the company as a whole.
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