Question
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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