Omega Company makes and sells jungle gyms and tree houses for children. For jungle gyms, the price is $150 and the variable expenses are $100 per unit. For tree houses, the price is $180 and the variable expenses are $120. Total fixed expenses are $215,250. Last year, Omega sold 10,000 gyms and 6,000 tree houses. Using the lowest whole numbers, what is the sales mix of gyms and tree houses?

Question

Business

Justus Allison

15 March, 15:26

Omega Company makes and sells jungle gyms and tree houses for children. For jungle gyms, the price is $150 and the variable expenses are $100 per unit. For tree houses, the price is $180 and the variable expenses are $120. Total fixed expenses are $215,250. Last year, Omega sold 10,000 gyms and 6,000 tree houses. Using the lowest whole numbers, what is the sales mix of gyms and tree houses?

+4

Answers (2)

Know the Answer?

Clare Campos · Answer 1

b 5:3

Explanation:

Jungle gym sales unit : tree sales unit

10,000 : 6,000

10,000 / 6000

= 5/3

=5:3

Hillary Durham · Answer 2

B. 5:3

Explanation

Given that

Gyms sold = 10,000

Tree sold = 6000

Sales Mix

= 10000 : 6000

That is

10000/6000

= 5/3

Thus

Sales mix = 5:3

Recall that

Sales mix is the relative proportion of business products that are sold. That is, the ratio of each product that an organization sells to total product.