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Exercise 4: The Aqua Company is currently producing and selling 3 product lines: A, B and C. The following table is the result of 20X0:

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Exercise 4: The Aqua Company is currently producing and selling 3 product lines: A, B and C. The following table is the result of 20X0: Contribution Product Line Sales price per unit margin ratio Units sold A $100 20% 200,000 B $200 40% 300,000 $300 30% 400,000 Total fixed cost the year is $32,000,000. Requirements: 1. Calculate the profit/loss and weighted contribution margin ratio for 20X0. 2. Is this the optimal sales mix in order to maximise the profit? Why? 3. Given that the sales mix remain unchanged, determine break-even revenue for each product line A,B and C

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