B. See correct answer.

C. The first step is to calculate the composite units contribution margin for products A and B. The formula is: [3 units of A × ($5 - $3)] + [1 unit of B × ($6 - $5)] = (3 × $2) + (1 × $1) = $6 + $1 = $7 composite unit contribution margin. This is the contribution margin for a basket of goods that includes 3 units of A and 1 unit of B.

The second step is to calculate the composite breakeven point in number of baskets. Fixed cost $280,000 ÷ Composite CM $7 = 40,000 composite breakeven point in baskets of goods containing 3 units of A and 1 unit of B.

The third step is to calculate the breakeven point in sales. If the breakeven number of baskets is 40,000 and each basket contains 1 unit of Product B, then the breakeven number of units of Product B is 40,000 × 1, or 40,000. 40,000 units of Product B × $6 sales price of Product B = $240,000 sales revenue for Product B at the breakeven point.

D. See correct answer.