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.
Perform the following showing your work for each question:
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.© BrainMass Inc. brainmass.com June 3, 2020, 11:11 pm ad1c9bdddf
The expert determines the weighted averages and break even.