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Maxie Pty Ltd Makes and Sells Two Types of Shoes

question 59

Multiple Choice

Maxie Pty Ltd makes and sells two types of shoes: Plain and Fancy. Product data is as follows: 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. Determine the total number of units Maxie Pty Ltd must sell to break even. A)  9375 B)  5000 C)  4737 D)  2647
Sixty per cent of the sales in units are Plain and annual fixed expenses are $45 000 and the sales mix remains constant.
Determine the total number of units Maxie Pty Ltd must sell to break even.


Definitions:

Total Economic Profit

Total economic profit is the difference between a firm's total revenues and its total costs, including both explicit and implicit costs.

Profitable Level

Refers to the point at which a business or operation generates revenue exceeding its costs, leading to financial gain.

Output

is the total amount of goods and services produced by an economy, firm, or production process.

Market Price

The actual selling price of a good or service in the marketplace, influenced by supply and demand.

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