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 Fancy that Ahmed must sell to break even is:
A. 3,375.
B. 3,000.
C. 5,000.
D. 2,000.
E. 5,625.
Answer: D
You might also like to view...
Which of the following reflects the "people" component of the marketing mix?
A) the creativity, discipline, and structure brought to marketing management B) the development of new products by the marketers C) the firm's consumer-directed activities D) the right set of processes to guide activities and programs within the firm E) the internal marketing of the firm
Which of the following would be reported in the operating, investing, or financing sections of the statement of cash flows prepared under the indirect method?
a. Declaration of an unpaid cash dividend b. Acquisition of a factory warehouse by issuing long-term debt c. Gain on the sale of cash equivalents d. Write-off of an uncollectible account receivable e. None of these answers is correct.
A downside of publicity is that:
A. it is often perceived by consumers as an untrustworthy and unethical practice. B. the marketer has no control over how the media present the company or its products. C. it is a highly expensive affair. D. it lacks proper planning.
Which form of oral communication conveniently allows for information to be shared and reviewed at any time?
a. phone call b. voice mail c. face-to-face meeting d. text message