Your business sells two meal plans: Plan A and Plan B. Last year, you sold 75,850 units for Meal Plan A and 23,450 units for Meal Plan B by the end of this year. Please answer the following questions based on the information given:

Plan A: Avg. Price $15.00; Variable Cost per unit: $3.50 Plan B: Avg. Price $13.50, Variable Cost per unit: $4.50 Fixed Costs/Year $350,000 labor $ 95,000 utilities $258,600 lease $ 85,750 interests $ 12,450 other fixed costs

What is the sales mix in the previous year? What is the contribution margin ratio for the business?

In the coming year, you plan to invest additional expenses ($3240) on sales and marketing. You can consider this a fixed cost/year.

In the coming year, how many Meal Plan As and Plan Bs do you need to sell to make $85,000 annual profit (assuming the same sales mix as the previous year)?

NOTE: no income tax needed for this problem