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Spilker Company makes and sells three types of picture frames: wood, metal, composite. Data from the past month related to these three products follows: Unit

Spilker Company makes and sells three types of picture frames: wood, metal, composite. Data from the past month related to these three products follows:

Unit Sales PriceUnit Contribution MarginUnits sold

Wood frames$55$3510,000

Metal frames$80$5012,000

Composite frames$95$6023,000

Total company fixed costs: $235,000.

The expected sales mix next month for wood, metal and composite frames is 30%, 50% and 20% respectfully and the desired overall company profit is $200,000. What would be the number of units of metal frames that would need to be sold? (round to the nearest unit)

  • None of these
  • 1,706 units
  • 15,536 units
  • 7,768 units

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