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Ahmed & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows: Plain Fancy Unit selling price

Ahmed & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows:

Plain Fancy
Unit selling price $ 20.00 $ 35.00
Variable cost per unit 12.00 24.50

Sixty percent of the unit sales are Plain, and annual fixed expenses are $45,000. Assuming that the sales mix remains constant, the number of units of Fancy that Ahmed must sell to break even is:

Multiple Choice

  • 2,000.

  • 3,000.

  • 3,375.

  • 5,000.

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