Figure 4-4

Multiple Choice

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