The Puppet Co How Many Units in Total Must Be Sold to Earn

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

A) 687,500
B) 165,000
C) 112,500
D) 171,875

Correct Answer:

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