Figure 4-4. Yerke Company makes jungle gyms and tree houses for children.For jungle gyms,the price is $120 and variable expenses are $90 per unit.For tree houses,the price is $200 and variable expenses are $100.Total fixed expenses are $253,750.Last year,Yerke sold 12,000 gyms and 4,000 tree houses.
Refer to Figure 4-4.Using the lowest whole numbers,what is the sales mix of gyms and tree houses?
A) 4:1
B) 3:1
C) 3:2
D) 2:3
E) 1:4
Correct Answer:
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