Question

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

	Plain				Fancy
Unit selling price	$	25.00			$	34.00
Variable cost per unit		12.00				26.00

Sixty percent of the unit sales are Plain, and annual fixed expenses are $60,500.

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)

3675

3300

2300

5500

6125

Answer 1