45 4 Lincoln company sells tote bags in the small, medium and large categories. 5 Below are the unit selling price for each category, as well as its respective 6 unit variable costs: 7 8 Small Medium Large 9 Unit Price 50 70 100 10 Unit Variable Cost 30 40 11 12 The sales mix% is as follows: 13 Small Medium Large 14 Sales Mix % 40% 20% 40% 15 16 The company's annual fixed costs are $72,000 with a target operating profit of $108,000. 17 18 How much of each item needs to be sold in order to break even?...in order to reach the 19 target operating profit? 20 21 Concept Question: 22 Suppose 4,900 units were actually sold. Would it be possible for this company 23 24 to achieve its Target Operating Profit of $108,000 (assuming fixed costs were 25 $72,000). If so, why and what would have had to happen? 26 27 28 29 30 31 32 33 34