Problem

Analyzing Multiproduct CVPTien Company has two products: Product A has a contribution marg...

Analyzing Multiproduct CVP

Tien Company has two products: Product A has a contribution margin per unit of $4 and Product B has a contribution margin of $6 per unit. Calculate the weighted average contribution margin if Tien has a 50/50 sales mix. Explain how a shift in the sales mix would affect Tien’s weighted average contribution margin and its break-even point.

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