How many units of fancy maxie sell to earn target profit

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Problem - Consider the following data. Maxie Pty Ltd makes and sells two types of shoes, Plain and Fancy. Product data is as follows:

 

Plain

Fancy

Unit selling price

$20.00

$35.00

Variable costs per unit

$12.00

$24.50

Sixty per cent of the sales in units are Plain and annual fixed expenses are $45,000 and the sales mix remains constant.

How many units of Fancy must Maxie sell to earn a target profit of $31,500?

A) 3,400.

B) 1,654.

C) 2,000.

D) 8,500.

Reference no: EM132931845

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