Question: 1. The sales mix of a company's two products, X and Y, is 2:1. Unit variable costs for both products are $2, and unit sales prices are $5 for X and $4 for Y. What is the contribution margin per composite unit? (a) $5, (b) $10, or (c) $8.
2. When output volume increases, do fixed costs per unit increase, decrease, or stay the same within the relevant range of activity? Explain.
3. When output volume increases, do variable costs per unit in crease, decrease, or stay the same within the relevant range of activity? Explain.