1.CVP in multiple product settings

Radio Raves Ltd sells three models of radios: Luxury, standard and portable.Unit cost and sales data are as follows:

LuxuryStandardPortable

Unit selling price$250$100$30

Unit variable costs2006010

Contribution margin per unit$50$40$20

Sales mix10%40%50%

Annual fixed costs are $620,000

Requirements

(a)Calculate the breakeven point in total units for the company.Also determine the number of units of each product to be sold to achieve this breakeven.

(b)Assume that in a given year the company sold a total of 25,000 units.However, rather than the sales mix indicated above, the sales mix was Luxury 12%; Standard 40%; and Portable 48%.Would this change in sales mix increase or decrease profit?By what amount?