CORRECT ANSWER B. METAL CRAFT WOULD NEED TO SELL 54,300 MODEL N...

203.

Correct answer b. Metal Craft would need to sell 54,300 Model No. 153 socket sets in order to

generate $161,200 in operating income based on the following calculation.

Sales mix: Model 109: 20%; Model 145: 50%; Model 153: 30%

Breakeven: (.2 x $10 - $5.50)A + (.5 x $15 - $8)A + (.3 x $20 - $14)A =

$161,200

$.90A + $3.50A + $1.80A =

$1,122,200

$6.20A =

$1,122,200

A = 181,000 sets

Model 153 breakeven: 181,000 sets x 30% = 54,300 sets