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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.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92573657

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