Question 4: AB-25 is a top-selling electronic product. The company divides its customers into two groups: new customers and upgrade customers. Although the same physical product is provided to each customer group, sizeable differences exist in selling prices and variable marketing costs: New Customers Upgrade Customers Selling price $200 $150 Variable costs Manufacturing $25 $20 Marketing 50 75 25 45 Contribution margin S? The fixed costs of AB-25 are $16,000,000. The planned sales mix in units is 80% new customers and 20% upgrade customers. be Required: 1. What is the break-even point in units for AB-25, assuming that the planned 80%/20% sales mix is attained? [4 marks] 2. If the sales mix is attained, what is the profit when 150 000 units are sold? [4 marks) 3. Show how the break-even point in units changes with the following customer mixes (a and b): new 30%/upgrade 70% [5 marks/ 15 marks] b. new 60%/upgrade 40% c. Comparing the break-even points in requirements a and b, is it always better for a company to choose the sales mix that yields the lower break-even point? Explain. a