Ahmed & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows: Plain FancyUnit selling price$20.00 $35.00 Variable cost per unit 12.00 24.50 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 Ahmed must sell to break even is:
A. 5,625.
B. 3,000.
C. 2,000.
D. 3,375.
E. 5,000.
Answer: B
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