Question 2:

Poco Builders Inc. produces three products: A, B, and C. The following information is presented for the three products:

Fixed Cost	$ 123,500
	Product A	Product B	Product C
Units produced	80	120	200
Price Per Unit	$ 200	$ 400	$ 700
Variable Cost Per Unit	$ 90	$ 150	$ 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