Delta Ltd prepares frozen meals to restaurants in Singapore. When a customer orders the item, the restaurant heats and serves it. The budget data for 20X1 is as follows:

	Products
	Chicken Meal	Duck Meal
Unit selling price	$5	$8
Unit variable costs	$3	$5
Sales units	250,000	125,000

Budgeted fixed cost per year amounted to $840,000.

Required:

1. Determine the sales mix. Use fractions as numbers are not exact.
2. Determine the weighted average unit contribution margin (WAUCM).
3. Compute the break-even point in units of the combined product and the breakdown by each product, assuming the planned sales mix is maintained.
4. Compute the budgeted profit for 20X1.
5. Suppose 90,000 units of duck meals and 270,000 units of chicken meals are sold. What will be the profit?
6. Compute the new break-even point in units for the combined product and the breakdown of each product based on the new sales mix.
7. What is the major lesson learnt for this problem?