Total fixed costs are $41,500. The sales mix of LED bulbs and CFL bulbs is 60% and 40% respectively. Calculate the sales required to earn a target profit of $24,500 for the sales mix of products as given above.
Product Unit Selling Price Unit Variable Cost
LED bulbs $10 $4
CFL bulbs $5 $3
a.13,985 units
b.12,000 units
c.14,975 units
d.15,000 units
Answer: d.15,000 units
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