The garden supply company is introducing various aged trees to their product range in 2021. They have provided the following information relating to its planned activities.

I-year-old 2-year-old 3-year-old

Selling price $19 $24 $38

Variable cost/unit $9 $15 $20

Expected Sales Volume 40,000 30,000 10,000

Total fixed cost = $180,000

1. Calculate the contribution margin for each product, the sales mix percentages (based on sales volume) and the weighted average contribution margin.
2. Calculate the break-even point in total units and units per product based on the data.
3. Management is now considering increasing the price of 1-year-old trees by $3 with an expected drop in volume to 30,000 trees while lowering the price of 3-year-old trees by $3 with an expected increase in volume to 20,000 trees. There would be no change to the price and sales volume of 2-year-old trees. Implementing this initiative would increase annual fixed costs by $10 000. On the available data, would you recommend the initiative?

please explain the answer.