Exhibit 6-4
Sanchez Company Produces Two Different Remote Control Products

Multiple Choice

Exhibit 6-4
Sanchez Company produces two different remote control products with the following monthly data for the most recent month:
$\begin{array}{lccc}& \text { Plane } & \text { Boat } & \text { Total } \\\text { Selling price per unit } & \$ 300 & \$ 100 & \\\text { Variable cost per unit } & \$ 240 & \$ 60 & \\\text { Expected unit sales } & 28,000 & 7,000 & 35,000 \\\text { Sales mix } & 80 \% & 20 \% & 100 \% \\\text { Fixed costs } & & & \$ 1,400,000\end{array}$


-Refer to Exhibit 6-4.Assume the sales mix remains the same at all levels of sales.
How many units of each product must be sold to break even?

A) Plane 22,400 units;Boat 5,600 units
B) Plane 11,200 units;Boat 2,800 units
C) Plane 20,000 units;Boat 5,000 units
D) Plane 56,000 units;Boat 14,000 units
E) None of the answer choices is correct.