assume a company sells 10 000 units ndash 5 000 of product a and 5 000 of product b 613964

Assume a company sells 10,000 units –5,000 of product A and 5,000 of product B. Product A has a contribution margin of $6.00 per unit, while Product B has a contribution margin of $4.00 per unit. If the sales mix changes to 5,500 units of Product A and 4,500 units of product B, which of the following is true?

1. The company will make more money because more of the product with the higher contribution margin per unit is being sold.
2. It will take fewer total units to break even now that more of the product with the higher contribution margin per unit is being sold.
3. The breakeven point depends on the current sales volume as it effects the sales mix.
4. All of the above are true.