Question
Laurie's shop is selling products of three sizes: small, medium, and large. The sale mix is 5:3:2. Small-size products are sold at $10 per unit
Laurie's shop is selling products of three sizes: small, medium, and large. The sale mix is 5:3:2. Small-size products are sold at $10 per unit and cost $4 per unit; medium-size products are sold at $4 per unit and cost $1 per unit; and large-size products are sold at $3.50 per unit and cost $2 per unit. The shop's fixed costs are $326,000 every year, and the income tax rate, t, is 20%. How many small-size products must the shop sell at the breakeven point? (Round per-unit amounts to 2 decimal places; round other intermediate calculations to nearest whole dollars.)
Multiple Choice
-
53,810.
-
83,810.
-
22,810.
-
38,810.
-
46,810.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started