5. Determine the change in contribution margin as a result of a change in sales...
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5. Determine the change in contribution margin as a result of a change in sales mix for the following: a. Base case b. Favorable mix change c. Unfavorable mix change Basic facts: Sales price per unit in all three cases $10 Contribution margin: Product A 20%, Product B 30%, Product C 40% and Product D 50% Sales units for base case 25 units for all four products Sales units for favorable mix change: Product A 10 units, Product B 20 units, Product C 30 units and Product D 40 units Sales units for unfavorable mix change: Product A 40 units, Product B 30 units, Product C 20 units and Product D 10 units
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