[The following information applies to the questions displayed below] Jamal & Co.

Question

[The following information applies to the questions displayed below] Jamal & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows: Plain Unit selling price Variable cost per unit Fancy $25.00$3400 26.50 15.00 Sixty percent of the unit sales are Plain, and annual fixed expenses are $45,000. The weighted-average unit contribution margin is 10 The weighted-average unit contribution margin is (Round intermediate calculations and final answer to 2 decimal places) an amount other than those above O $1700 O $9.00 O $9.25. O $4.80. Requ Assuming that the sales mix remains constant, the total number of units that Jamal must sell to break even is (Round intermediate calculations to 2 decimal places and final answer to nearest whole number) O 2.432 an amount other than those above. 2,647 5,000 4,737

Explanation / Answer

Weighted average contribution margin=(25-15)*60%+(34-26.5)*40%=9 Option 3 is correct 11 Units to break even = 45000/9 = 5000 Option 4 is correct

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