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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Definitions:

Contract

An agreement between two or more parties creating obligations that are enforceable or otherwise recognizable by law.

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The authority or power to regulate, direct, or command something or someone's actions or decisions.

Conduct

Refers to the manner in which an individual behaves, especially within a professional or formal context.

Employer-Employee

The legal relationship between a person or company who hires and the individual who is hired to perform a specific task.