Hargenrader, Inc. produces and sells two products. During the most recent month, Product P02S sales were $24,000 and its variable expenses were $7,920. Product O50Us sales were $41,000 and its variable expenses were $14,180. The companys fixed expenses were $40,350.

A. Determine the overall break-even point for the company in total sales dollars. Show your work. Check figure: $61,136

Contribution Margin = Sales Revenue total variable costs

= 65,000(24,000+41,000) 22,100 (7,920+14,180)

= 42,900

Overall CM ratio = Total contribution margin/total sales

=42,900/65,000

= 0.66

Break-even point in total sale dollars = Fixed expenses/Overall CM Ratio

= 40,350/0.66

= 61,136

B. What is the amount of sales for each product at the break-even point?

P02S BEP = 61,136*24,000/65,000 = 22,573

O50U BEP = 61,136*41,000/65,000 = 38,563

C. If the sales mix shifts toward Product P02S with no change in total sales, what will happen to the break-even point for the company? Explain.

Please answer question C