Gilbert

Business

1 October, 15:24

Ahmed & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows: Unit selling price: Plain - $ 20.00, Fancy - $ 35.00 Variable cost per unit: Plain - 12.00, Fancy - 24.50 Sixty percent of the unit sales are Plain, and annual fixed expenses are $45,000. 1) The weighted-average unit contribution margin is: (Round intermediate calculations and final answer to 2 decimal places):

a) $6.60.

b) $2.40.

c) $14.60.

d) $6.85.

e) an amount other than those above.

2) Assuming that the sales mix remains constant, the total number of units that Jamal must sell to break even is: (Round intermediate calculations to 2 decimal places and final answer to a nearest whole number):

a) 4,147.

b) 6,500.

c) 3,932.

d) 6,237

e) an amount other than those above.