Maxie Pty Ltd Makes and Sells Two Types of Shoes

question 29

Multiple Choice

Maxie Pty Ltd makes and sells two types of shoes, Plain and Fancy. Product data is as follows:
Sixty per cent of the sales in units are Plain and annual fixed expenses are $45 000 and the sales mix remains constant.
How many units of Fancy must Maxie Pty Ltd sell to earn a target profit of $31 500?

• A) 3400
• B) 2000
• C) 7286
• D) 8500