CVP Analysis with multiple products ABC (Pty) Ltd manufactures and sells three products A, B and C. Annual fixed costs are R1 210 000 and total budgeted sales are 45 000 units.

	A	B	C
Sales Mix in Units	50%	30%	20%
Selling Prices	R200	R600	R800
Variable Costs	R100	R280	R320
Contribution Margin	R100	R320	R480

Required: In 1 to 3, use the sales mix as stated above. A. Determine the weighted average contribution margin and contribution margin ratio. B. Determine the break-even volume in units and in sales Rands in total and for each product.

C. Determine the number of each product that must be sold to obtain a profit of R484 000. D. Assume the sales mix is changed to 40%, 30% and 30%. Will the number of units required to break-even be increased or decreased? Explain.