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Assume the Mountain Furniture Company sells two kinds of tables, oak and pine. At a 1:1 (one-to-one) unit sales mix in which Mountain sells one oak table for every pine table, the following revenue and cost information is available:
Oak Table Pine TableUnit selling price $1,200 $400Unit variable costs ( 300) (300)Unit contribution margin $ 900 $100Fixed costs per month $15,000
Assuming a 1:1 sales mix, calculate Mountain Furniture's current monthly average unit contribution margin ration, break-even sales volume, and number of units of Pine and Oak tables at break-even point.
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