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Maxie Pty Ltd makes and sells two types of shoes, Plain and Fancy. Product data is as follows:
Plain:
Unit Selling Price $20
Variable cost per unit $12
Fancy:
Unit Selling Price $35
Variable cost per unit $24.50
Question 1: 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 Pty Ltd sell to earn a target profit of $31 500?
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