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Question 2: Ouest Builders Inc. produces three products: A, B, and C. The following information is presented for the three products: Fixed Cost $
Question 2: Ouest Builders Inc. produces three products: A, B, and C. The following information is presented for the three products: Fixed Cost $ 142,000 Units produced Product A Product B Product C Price Per Unit 80 120 200 Variable Cost Per Unit $ 120 $ 600 $ 800 $ 60 $ 360 $ 400 Required: 1. Calculate the contribution margin for each product 2. Calculate the break-even point in units of the three products A, B, and C combination based on the sales mix percentage 3. Please give suggestions to the decision makers about how to increase profit based on the CVP analysis.
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