Lab Corp is considering adding a new test to its drug testing line with the following unit price and cost information

	737834-Optiate Confirmation	071318-MDMA Confirmation
Unit sales price	$37.50	$30.00
Unit variable cost	7.50	15.00
Unit contribution margin	$30.00	$15.00
Monthly fixed costs	$60,000

Assume the product mix is four units of 737834 for every one unit of 071318.

1) Compute the weighted average unit contribution margin

2) How many units of each product must be sold to break even?

3) Explain what would happen to the break-even point if the unit sales mix was 1:1. What is the number of units that must be sold to break even?

4) Using the new sales mix of 1:1, how many unit of each product must be sold to earn $75,000 per month?

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