Question 4 Levantine Company offers two products. At present, the following represents the usual results of a month's operations: Units of sales Sales Revenue Variable Costs Contribution Margin Fixed Expenses Net Operating Income Total $34,200 $10,800 $23,400 Product Alpha 18,000 Per Unit $1.90 $0.60 $1.30 Product Bravo Total $34.500 $25,500 $9,000 30,000 Per Unit $1.15 $0.85 $0.30 Company Total $68,700 $36,300 $32,400 $25,000 $7,400 a) What is the current weighted average contribution margin for the orgaution? b) The sales department is considering selling to a new distributor that could increase sales and is projected to increase net operating income to $20,000. Management needs to know how many units of each product to build. Assuming no change in fixed costs, how many units of each product should be made? Hint: You must apply sales mix theory to solve this.

N What is the current weighted average contribution margin for the or increase net oporating income to \$20,000. Management needs to know how many units of each product to build. Assuming no change in foxed costs, how many units of each product should be made? Hint: You must apply sales mix theory to solve this