AC211 Management Accounting - Assessment 2 QUESTION 6 Cost Volume Profit - Sales Mix (20 marks) The Kenosha Company has three product lines of beer mugs-A. B and C-with contribution margins of $5, $4 and $3, respectively. The chief executive officer foresees sales of 175 000 units in the coming period, consisting of 25 000 units of A, 100 000 units of B and 50 000 units of C. The company's fixed costs for the period are $351 000. Required 1. What is the company's break-even point in units, assuming that the given sales mix is maintained? 2. If the sales mix is maintained, what is the total contribution margin when 175 000 units are sold? What is the operating profit? 3. What would operating income be if the company sold 25 000 units of A, 75 000 units of B and 75 000 units of C? What is the new break-even point in units if these relationships persist in the next period? 4. Comparing the break-even points in requirements 1 and 3, is it always better for a company to choose the sales mix that yields the lower break-even point? Explain