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Product 1 has a contribution margin of 6.00 per unit, and Product 2 has a contribution margin of 7.50 per unit. Total fixed costs are
Product 1 has a contribution margin of 6.00 per unit, and Product 2 has a contribution margin of 7.50 per unit. Total fixed costs are 300,000. Sales mix and total volume varies from one period to another. Which of the following is TRUE? At a sales volume in excess of 25,000 units of 1 and 25,000 units of 2, operations will be profitable. The ratio of net profit to total sales for 2 will be larger than the ratio of net profit to total sales for 1. The contribution margin per unit of direct materials is lower for 1 than for 2 The ratio of contribution to total sales always will be larger for 1 than for 2
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