Extension of Basic CVP Model—Multiple Products On-the-Go, Inc., produces two models of traveling cases for laptop computers: the Programmer and the Executive. The bags have the following characteristics:

The total fixed costs for the company are $672,000.

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 nine Programmer-style bags for each Executive-style bag, what would be the new break-even volume for each of the products?

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Programmer Executive Selling price per bag $60 $90 Variable cost per bag $30 $40 Expected sales (bags) 7,000 10,500