Analyzing Multiproduct CVP
Refer to the information in E6-16 for BlueStar. Suppose the sales mix has shifted to 40/30/30.
Required:
1.Determine the new weighted average contribution margin.
2.Determine the number of units of each product that BlueStar must sell to break even if fixed costs are $187,000.
3.Determine how many units of each product must be sold to generate a profit of $73,000.
4.Explain why these results differ from those calculated in E6-16.
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