Ahmed & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning these...

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Ahmed & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows: Unit selling

business accounting

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Answer 1

Answer #1

Weighted average unit contribution margin

= [(20-12)*60%] + [(35-24.50)*40%]

= 9

Breakeven point = Fixed cost/Weighted average unit cm

= 45,000/9

=5,000

Units of plain = 5,000 * 60%

= 3000

Option B is the answer

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Answer 2

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