WenWen Company Makes and Sells Two Types of Peanut Butter

question 87

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 number of units of Smooth that the company must sell to break even is:

• A)1,757.
• B)3,140.
• C)3,432.
• D)3,600.
• E)3,990.

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