WenWen Company Makes and Sells Two Types of Peanut Butter

question 33

Multiple Choice

WenWen Company makes and sells two types of peanut butter, Smooth and Chunky. Data concerning these products are as follows: $\begin{array} { l c c } & \text { Smooth } & \text { Chunky } \\\text { Unit selling price } & \$ 40.00 & \$ 55.00 \\\text { Variable cost per unit } & 16.00 & 24.50\end{array}$ Forty percent of the unit sales are Chunky, and annual fixed expenses are $159,600. Assuming that the sales mix remains constant, the total number of units that the company must sell to break even is:

• A)2,928.
• B)5,233.
• C)5,720.
• D)6,000.
• E)6,650.

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Definitions:

Culture Shock

The sense of confusion, uncertainty, or anxiety experienced by someone exposed to an unfamiliar culture or way of life.

Compensation

Payment or rewards given to employees in exchange for their services or labor.

Standard Of Living

The degree of wealth, comfort, material goods, and necessities available to a person, group, or nation.

Relocation Expenses

Costs associated with moving and adjusting to a new location when a job requires geographical change, often covered or reimbursed by the employer.