This is what I have so far, please correct me if I am wrong.

1. If the sales mix shifted more to the 40% sweater and 60% jacket, then the break-even units will increase meaning that you will have to put more in. It will take longer to breakeven.
2. Unlike a, if the sales mix shifted to 90% sweater and 10% jacket, the breakeven units will decrease. The contribution per unit covers the fixed cost of the sweaters more than the jacket. Increasing the mix ratio will bring break even, earlier for sweaters and less units will be required for the company to make a profit.

e Assume case. What is the margin of 32. Changes in Sales Mix. Warm Clothing, Inc. produces two different products with the following monthly Total data (these data are the same as the previous exercise). Sweater Jacket 30,000 $100 $400 Selling price per unit Variable cost per unit $ 40 $240 Expected unit sales 21,000 9,000 Sales mix 70 percent 30 percent 100 percent Fixed costs Required: $1,800,000 a. If the sales mix shifts to 40 percent Sweater and 60 percent Jacket, would the break-even point in unts increase or decrease? Explain. (Detailed calculations are not necessary but may be helpful in confirming your answer.) b. Go back to the original projected sales mix. If the sales mix shifts to 90 percent Sweater and 10 percent Jacket, would the break-even point in units increase or decrease? Explain. (Detailed calculations are not necessary but may be helpful in confirming your answer.)