Jamal & Co Sixty Percent of the Unit Sales Are Plain, and Annual

question 46

Multiple Choice

Jamal & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows: $$\begin{array} { l c l } & \text { Plain } & \text { Fancy } \\\text { Unit selling price } & \$ 20.00 & \$ 35.00 \\\text { Variable cost per unit } & 12.00 & 24.50\end{array}$$ Sixty percent of the unit sales are Plain, and annual fixed expenses are $45,000.
Assuming that the sales mix remains constant, the number of units of Plain that Jamal must sell to break even is:

• A) 2,000.
• B) 3,000.
• C) 3,375.
• D) 5,000.
• E) 5,625.

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