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Plain Fan
Unit selling price $20.00 35
Variable costs per unit $12.00 $24.50
Maxie Pty Ltd makes and sells two types of shoes, Plain and Fancy. Product data is as above: Sixty per cent of the sales in units are Plain and annual fixed expenses are $45 000 and the sales mix remains constant.
Problem 1: How many units of Fancy must Maxie Pty Ltd sell to earn a target profit of $31 500?
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