Question
Versatile Corporation produces and sells two products. in the most recent month, product Tt99 had a sales of $60,000 and variable expenses of $30,000. Product
Versatile Corporation produces and sells two products. in the most recent month, product Tt99 had a sales of $60,000 and variable expenses of $30,000. Product SS88 had sales of $140,000 and variable expenses of $98,000. The fixed expenses of the entire company were $45,000. if total sales revenue and total fixed costs for the coming month stay the same, but the sales mix defined as sales revenue of a single product in total sales revenue, of the TT99 increases from 30% to 70% and, as the result, the sales mix of SS88 decreases from 70% to 30%, determine the change in break-even sales revenue. A) Break-even sales revenue will stay the same. B) Break-even sale revenue will increase by $22,727. C)Break-even sale revenue will decrease by $22,727. D)Break-even sale revenue will increase by $7784. E)Break-even sales revenue will decrease by $7784. Answer C is the correct one. could you provide steps how to get the answer thanks.
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