Question: Assuming a constant sales mix, we can compute a contribution margin for a package of the firms sales. Suppose we sell 2 units of A

Assuming a constant sales mix, we can compute a contribution margin for a package of the firms sales.

Suppose we sell 2 units of A for every unit of B. The price per unit is $4 for A and $10 for B, and the CM/unit is $2 for A and $6 for B. Fixed costs are $10,000.

What is breakeven sales in units for each product? In dollars?

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