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Problem - Wide Open Industries Inc. has fixed costs of $475,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow:
Product
Selling Price
Variable Cost per Unit
Contribution Margin per Unit
AA
$145
$105
$40
BB
110
75
35
Required - The sales mix for Products AA and BB is 60% and 40%, respectively. Determine the break-even point in units of AA and BB.
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