q1 Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $31,590 and variable expenses of $9,477. Product Y45E had sales of $19,550 and variable expenses of $8,798. The fixed expenses of the entire company were $18,000. 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:

Multiple Choice

• would decrease.

• would increase.

• could increase or decrease.

• would not change

q2 Krepps Corporation produces a single product. Last year, Krepps manufactured 33,930 units and sold 28,300 units. Production costs for the year were as follows:

Direct materials	$	288,405
Direct labor	$	145,899
Variable manufacturing overhead	$	288,405
Fixed manufacturing overhead	$	542,880

Sales totaled $1,287,650 for the year, variable selling and administrative expenses totaled $164,140, and fixed selling and administrative expenses totaled $206,973. There was no beginning inventory. Assume that direct labor is a variable cost.

Under absorption costing, the ending inventory for the year would be valued at:

Multiple Choice

• $237,499

• $279,999

• $209,999

• $271,49