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The company is considering making a deluxe model. Its price would be $156, and its variable cost per unit would be $100, compared to a
The company is considering making a deluxe model. Its price would be $156, and its variable cost per unit would be $100, compared to a price of $100 and a variable cost of $60 for the basic model. It anticipates a sales mix of 60% basic model and 40% deluxe model. How many units of the basic model and how many units of the deluxe model must the company sell to achieve a monthly profit of $25,000.
Cost Category Fixed Cost Variable Cost per unit 30 Direct Material Direct Labor Rent Depreciation Electricity Other Manufacturing Selling Sales Commission Administrative 1200 Units produced and sold 36,000 18,000 5,000 4,000 4,400 19,600 8,000 12,000 5,000 1900 Units produced and sold 57,000 28,500 5,000 4,000 5,800 21,700 8,000 19,000 5,000 5,000 4,000 2,000 16,000 8,000 5,000Step by Step Solution
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