Seascape Company has two products: Product A has a contribution margin per unit of $4 and Product

Question:

Seascape Company has two products: Product A has a per unit of $4 and Product B has a of $6 per unit. Calculate the weighted-average unit if Seascape has a 25/75 product mix. Explain how a shift in the product mix would affect Seascape’s weighted-average and its break-even point.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...