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Question - Malibu, Inc., which has fixed costs of $2,150,000, sells three products whose sales price, variable cost per unit, and percentage of sales units are presented in the table below.


Product A

Product B

Product C

Sales Price

$ 7.00

$ 12.00

$25.00

Variable Price

$ 3.00

$ 10.00

$ 12.00

Sales Mix

60%

30%

10%

a. What is the weighted average unit contribution margin?

b. At the break-even point, how many units of Product A must be sold?

c. To make a profit of $1,075,000, how many units of Product B must be sold?

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