Final answer:
Shifting the sales mix towards Product C90B, which has a higher contribution margin, while keeping total sales constant, would result in a b) decrease in the overall break-even point for Flesch Corporation.
Step-by-step explanation:
The question concerns a scenario involving Flesch Corporation, which produces and sells two products, C90B and Y45E. When analyzing the break-even point for the company, we must consider the contribution margin of each product.
The contribution margin is calculated by subtracting the variable expenses from the sales for each product. For Product C90B, the contribution margin is $24,080 (sales) - $6,020 (variable expenses) = $18,060. For Product Y45E, it is $26,660 (sales) - $13,330 (variable expenses) = $13,330.
Since Product C90B has a higher contribution margin, shifting the sales mix toward Product C90B would yield a higher overall contribution margin for the same level of sales. Because the fixed expenses of $23,200 remain constant, a higher contribution margin would enable the company to cover its fixed costs with lower sales, thereby reducing the break-even point.
Hence, if the sales mix shifts toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company would decrease.