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.

Data from E6-16

BlueStar makes three models of camera lens. Its sales mix and contribution margin per unit follow:

Transcribed Image Text:

Percentage of Total Sales CM per Unit Lens A 25% $40 Lens B Lens C 40 35 32 45