Sundial, Inc., produces two models of sunglasses-AU and NZ. The sunglasses have the following characteristics. Selling...
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Sundial, Inc., produces two models of sunglasses-AU and NZ. The sunglasses have the following characteristics. Selling price per unit Variable cost per unit Expected units sold per year $ $ AU 360 68 50,000 $ $ NZ 368 180 75,000 The total fixed costs per year for the company are $5,244,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point, compute the break-even point. c. If the product sales mix were to change to four pairs of AU sunglasses for each pair of NZ sunglasses, what would be the new break-even volume for Sundial, Inc.? What is the anticipated level of profits for the expected sales volumes? Anticipated profit Required A Required B Required C Break-even point Assuming that the product mix is the same at the break-even point, compute the break-even point. Break-even point units Required A Required C units < Required A Required A Required B If the product sales mix were to change to four pairs of AU sunglasses for each pair of NZ sunglasses, what would be the new break-even volume for Sundial, Inc.? Required B > < Required B Required C > Required C> Sundial, Inc., produces two models of sunglasses-AU and NZ. The sunglasses have the following characteristics. Selling price per unit Variable cost per unit Expected units sold per year $ $ AU 360 68 50,000 $ $ NZ 368 180 75,000 The total fixed costs per year for the company are $5,244,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point, compute the break-even point. c. If the product sales mix were to change to four pairs of AU sunglasses for each pair of NZ sunglasses, what would be the new break-even volume for Sundial, Inc.? What is the anticipated level of profits for the expected sales volumes? Anticipated profit Required A Required B Required C Break-even point Assuming that the product mix is the same at the break-even point, compute the break-even point. Break-even point units Required A Required C units < Required A Required A Required B If the product sales mix were to change to four pairs of AU sunglasses for each pair of NZ sunglasses, what would be the new break-even volume for Sundial, Inc.? Required B > < Required B Required C > Required C>
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BreakEven Analysis The breakeven point is usually determined in units and dollars by using the values of contribution ... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
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