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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
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2,000.
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3,000.
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3,375.
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5,000.
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