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Sam's Dog toys sells a Red toy and a Blue toy. The contribution margin for the Red toy is $2 and for the Blue toy
Sam's Dog toys sells a Red toy and a Blue toy. The contribution margin for the Red toy is $2 and for the Blue toy is $3. The expected sales mix is 80% for Red toy and 20% for Blue toy. The total fixed costs amount to $2,112 and the company desires to earn a profit of $264. What is the sale volume in units necessary to reach the desired profit?
1,056 total units
960 total units
120 total units
1,080 total units
Please include the formulas.
Thank you
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