Fortune Tools Produces and Sells Two Products Fixed Costs for the Entire Company Were $17,570

Fortune Tools produces and sells two products.Data concerning these products for the most recent month appear below:
$$\begin{array} { | l | r | r | } \hline & \text { Product } XY Z & \text { Product VAR } \\\hline \text { Sales } & \$ 14,000 & \$ 27,000 \\\hline \text { Variable costs } & \$ 6,720 & \$ 12,550 \\\hline\end{array}$$
Fixed costs for the entire company were $17,570.Required:
a.Determine the overall break-even point for the company.b.If the sales mix shifts toward Product XYZ,with no change in total sales,what will happen to the break-even point for the company? Explain.

Correct Answer:

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Overall CM ratio = Total contribution ma...

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