Question: Mueller Company manufactures and sells three products: A, B, and C. Annual fixed costs are $3,630,000, and data about the three products follow. A B C Sales mix in units 50% 30% 20% Selling price $200 $600 $800 Variable cost 100 280 320
Required: A. Determine the weighted-average unit contribution margin.
B. Determine the break-even volume in units for each product.
C. Determine the total number of units that must be sold to obtain a profit for the company of $605,000.
D. Assume that the sales mix for A, B, and C is changed to 40%, 30%, and 30%, respectively.
Will the number of units required to break-even increase or decrease? Explain. Hint: Detailed calculations are not needed to obtain the proper solution.