Cost Accounting Quiz
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COST BEHAVIOR AND COST-VOLUME-PROFIT
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Phoenix Enterprises produces three products with identical variable cost ratios of 60% of selling price. Product P sells for $40, Product Q for $25, and Product R for $35. Current sales mix is 1:2:2. Fixed costs are $180,000. If the company shifts to a sales mix that maximizes contribution margin per composite unit while maintaining at least 10% of sales volume for each product, what is the optimal sales mix ratio?
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