Question
Maxie Pty Ltd makes and sells two types of shoes, Plain and Fancy. Product data is as follows: Plain Fancy Unit selling price $20.00 $35.00
Maxie Pty Ltd makes and sells two types of shoes, Plain and Fancy. Product data is as follows:
| Plain | Fancy | |
| Unit selling price | $20.00 | $35.00 |
| Variable costs per unit | $12.00 | $24.50 |
Sixty per cent of the sales in units are Plain and annual fixed expenses are $45 000 and the sales mix remains constant.
How many units of Fancy must Maxie Pty Ltd sell to earn a target profit of $31 500?
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Management Accounting
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
7th Edition
978-1760421144, 1760421146
