Question

Ahmed & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows: Unit selling price Variable cost per unit Plain $25.00 15.00 Fancy $34.00 26.50 Sixty percent of the unit sales are plain, and annual fixed expenses are $45,000. Assuming that the sales mix remains constant, the number of units of Plain that Ahmed must sell to break even is: (Round intermediate calculations to 2 decimal places and final answer to nearest whole number) Multiple Choice 5,625. 3,000.

Answer 1

Ansuers (a) plain unil- salej = 60'/ Fancy unit sales = plain Contmbutio margin pen unit = $ 25- s Fancy Contributio mangin pen $34-$26.50 unut EIxed cos Break even Unus =' weightcd auenage Contributhon mcgin contrikutio mangyin ales welghteed avenage Contributim mangi F.of salas Contnbution X of Eany maongin per unt ef Plan (60' x S lo)(40 x) - $6 +$3 = $9. r Break even unikz $450oo Sooo unik X