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The Puppet Co How Many Units of Dah Must Be Sold at the \begin{array}{lll}&\text

Question 27

Multiple Choice

The Puppet Co. has the following unit and mix data:  Do  Dah  Total  Unit sales price $5.00$4.00 Unit contribution margin 0.750.6 Sales mix ($) 80%20% Fixed costs $99,000 Target profit 24,750\begin{array}{lll}&\text { Do }&\text { Dah }&\text { Total }\\\text { Unit sales price } & \$ 5.00 & \$ 4.00 \\\text { Unit contribution margin } & 0.75 & 0.6 \\\text { Sales mix }(\$) & 80 \% & 20 \%\\\text { Fixed costs }&&&\$99,000\\\text { Target profit }&&&24,750\end{array} How many units of Dah must be sold at the breakeven point?


A) 75,000
B) 27,500
C) 37,500
D) 55,000

Correct Answer:

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