Assume the Zeus Furniture Company sells two kinds of picnic tables, pine and redwood. At a 4:

$ 325

Fixed costs per month: $18,150

Required:

Assuming a 4:1 sales mix:

Calculate Zeus Furniture's current monthly average unit contribution margin.

Break-even sales volume.

Number of units of Pine and Redwood tables at break-even point.

Describe what the effect a change in the sales-mix would have on contribution margin.