The Pierson Co

question 116

Multiple Choice

The Pierson Co. has the following unit and mix data: Do Dah Total
Unit sales price $5.00 $4.00
Unit contribution margin 0.75 1.20
Sales mix ($) 80% 20%
Fixed costs $99,000
Target profit 24,750
How many units in total must be sold to earn the target profit?

• A)687,500
• B)165,000
• C)112,500
• D)144,375