Mount Carmel Company sells only two products, Product A and Product B.

Product A

Product B

Total

Selling price $600,000 $1,000,000 1,600,000

Variable cost per unit 360,000 500,000 860,000

Contribution Margin 240,000 500,000 740,000

Fixed cost 555,000

Operating income $185,000

A. Determine the overall break-even point for the company in total sales dollars. Do not round numbers. Show your work.

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

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