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A firm sells one product, a recliner, for a per unit price of $600. Variable costs per unit are $350. The firm also sells a

A firm sells one product, a recliner, for a per unit price of $600. Variable costs per unit are $350.

The firm also sells a second product, a love seat, for a per unit price of $750. Variable costs per unit are $500.

Finally, the firm sells a third product, a sectional couch, for a per unit price of $1,500. Variable costs per unit are $1,000.

The firm has a sales mix of 1 recliner for every 3 love seats and for every 2 sectional couches. That is, the sales mix is 1:3:2.

The firm has total fixed costs of $500,000.

How many units sales of sectional couches are required to earn a profit of $500,000?

1. 500 units

2. 1,500 units

3. 2,000 units

4. 1000 units

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