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Question - XYZ Company annually sells 30,000 units with a sales mix of 2:3:5: for product A , product B and product C. Product A sells for $10 and costs $5 to manufacture. Product B sells for $10 and costs $4 to manufacture. Product C sells for $6 and has a variable cost of $3. Fixed costs are $40,000
a) What is the net income with this sales mix?
b) How many units each of A, B and C must be sold for the company to breakeven?
c) How would your answer change if the sales mix was 4:2:4; of A, B, C?
d) What would you recommend to management about the sales mix of product A & B and C?
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