WenWen Company makes and sells two types of peanut butter, Smooth and Chunky. Data concerning these products are as follows: $\begin{array} { l c c }
& \text { Smooth } & \text { Chunky } \
\text { Unit selling price } & \$ 40.00 & \$ 55.00 \
\text { Variable cost per unit } & 16.00 & 24.50
\end{array}$ Forty percent of the unit sales are Chunky, and annual fixed expenses are $159,600. Assuming that the sales mix remains constant, the total number of units that the company must sell to break even is:
A)2,928.
B)5,233.
C)5,720.
D)6,000.
E)6,650.

Question

WenWen Company makes and sells two types of peanut butter, Smooth and Chunky. Data concerning these products are as follows: $\begin{array} { l c c } 
& \text { Smooth } & \text { Chunky } \
\text { Unit selling price } & \$ 40.00 & \$ 55.00 \
\text { Variable cost per unit } & 16.00 & 24.50
\end{array}$ Forty percent of the unit sales are Chunky, and annual fixed expenses are $159,600. Assuming that the sales mix remains constant, the total number of units that the company must sell to break even is:
A)2,928.
B)5,233.
C)5,720.
D)6,000.
E)6,650.

Quizplus · Accepted Answer

The Answer of WenWen Company makes and sells two types of peanut butter, Smooth and Chunky. Data concerning these products are as follows: $\begin{array} { l c c } 
& \text { Smooth } & \text { Chunky } \
\text { Unit selling price } & \$ 40.00 & \$ 55.00 \
\text { Variable cost per unit } & 16.00 & 24.50
\end{array}$ Forty percent of the unit sales are Chunky, and annual fixed expenses are $159,600. Assuming that the sales mix remains constant, the total number of units that the company must sell to break even is:
A)2,928.
B)5,233.
C)5,720.
D)6,000.
E)6,650.

WenWen Company Makes and Sells Two Types of Peanut Butter