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Alexis Tools makes 2 products, snips and cutters. Snips have a unit selling price of $40 and unit variable cost of $24 and cutters have
Alexis Tools makes 2 products, snips and cutters. Snips have a unit selling price of $40 and unit variable cost of $24 and cutters have a unit selling price of $50 and unit variable cost of $26. Alexis has annual fixed costs of $310,000. Alexis historical sales data indicates that snips and cutters are sold in a 2 to 3 sale mix. How many cutters will have to be sold if the company desires to earn a profit of $2,000 assuming the current sales mix.?
15,000 cutters | ||
9,000 cutters | ||
6,000 cutters | ||
14,000 cutters | ||
10,000 cutters |
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