BFA612 managerial and cost accounting

Question 3 A company, TGK, has three product lines of mugs (A, B, and C), with contribution margins of $15, $14 and $13, respectively. The chief executive officer predicts sales of 30,000 units, for the coming period, consisting of 20% of A, 50% of B and 30% of C. The company's fixed costs for the period are $375,000. Required a) What is the company's break-even point in units, assuming that the given sales mix is maintained? [6 mark] b) If the sales mix is maintained, what will the total contribution margin be when 30,000 units are sold? What will the operating profit be? [5 marks) c) What would the company's operating income be if the sales percentages changes to 25% units of A, 60% units of B and 15% of C? What is the new break- (6 marks] even point in units if these percentage remain the same in the next period