Question
A firm sells one product, a normal grill, for a per unit price of $110. Variable costs per unit are $10. The firm also sells
A firm sells one product, a normal grill, for a per unit price of $110. Variable costs per unit are $10.
The firm also sells a second product, a deluxe grill, for a per unit price of $200. Variable costs per unit are $150.
The firm has a sales mix of 2 normal grills for every 3 deluxe grills. That is, the sales mix is 2:3.
The firm has total fixed costs of $10,000.
How many unit sales of deluxe grills are required to earn a profit of $60,000?
A firm sells one product, a normal grill, for a per unit price of $110. Variable costs per unit are $10.
The firm also sells a second product, a deluxe grill, for a per unit price of $200. Variable costs per unit are $150.
The firm has a sales mix of 2 normal grills for every 3 deluxe grills. That is, the sales mix is 2:3.
The firm has total fixed costs of $10,000.
How many unit sales of deluxe grills are required to earn a profit of $60,000?
350 units
400 units
200 units
600 units
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