Exhibit 6-4
Sanchez Company Produces Two Different Remote Control Products

question 51

Multiple Choice

Exhibit 6-4
Sanchez Company produces two different remote control products with the following monthly data for the most recent month:
$\begin{array}{lccc}& \text { Plane } & \text { Boat } & \text { Total } \\\text { Selling price per unit } & \$ 300 & \$ 100 & \\\text { Variable cost per unit } & \$ 240 & \$ 60 & \\\text { Expected unit sales } & 28,000 & 7,000 & 35,000 \\\text { Sales mix } & 80 \% & 20 \% & 100 \% \\\text { Fixed costs } & & & \$ 1,400,000\end{array}$


-Refer to Exhibit 6-4.Assume the sales mix remains the same at all levels of sales.
How many units in total must be sold to earn a monthly profit of $504,000?

• A)43,273
• B)19,040
• C)38,080
• D)34,000
• E)None of the answer choices is correct.

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Definitions:

Economic Independence

The state of having sufficient personal wealth to live, without needing to work for basic necessities, allowing an individual financial freedom.

Erie Canal

A significant man-made waterway in New York, completed in the early 19th century, crucial for transportation and commerce, connecting the Great Lakes region with the Atlantic Ocean.

Canal Building

The construction of artificial waterways designed for the passage of boats or ships, irrigation, or water supply, playing a critical role in trade and transportation history.

National Railroad System

denotes a network of railway lines that span a nation, connecting various cities and regions, facilitating the transport of people and goods across the country.