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QS3: Fairy Garden Enterprise, having secured a loan, intend to use some of the proceeds to introduce various trees to their product range in 2022.

QS3: Fairy Garden Enterprise, having secured a loan, intend to use some of the proceeds to introduce various trees to their product range in 2022. They have provided the following information relating to its planned activities.
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QS3: Fairy Garden Enterprise, having secured a loan, intend to use some of the proceeds to introduce various trees to their product range in 2022 . They have provided the following information relating to its planned activities. Required: 1. Calculate the contribution margin, sales mix and weighted average contribution margin for each product. Also calculate the break-even point in total units and units per product based on the provided 2022 data. (15marks) 2. Management is concerned about competition for some of its trees and wants to alter its sales mix of trees. This initiative would increase annual fixed costs by \\( \\$ 52 \\) 500 and alter the sales mix to 40 percent for Wattle trees, 25 per cent for Banksia trees and 35 per cent for Acacia On the available data, would you recommend the initiative? Show all workings. (10 marks)

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