Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. On-the-Go, Inc., produces two models of traveling cases for laptop computers: the Programmer and the Executive. The bags have the following characteristics: Programmer Executive

2. On-the-Go, Inc., produces two models of traveling cases for laptop computers: the Programmer and the Executive. The bags have the following characteristics:

Programmer

Executive

Selling price per bag

$

60

$

100

Variable cost per bag

$

20

$

50

Expected sales (bags) per year

8,000

12,000

The total fixed costs per year for the company are $678,000.

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. (Round your final answer up to the nearest whole unit.)

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 On-the-Go? (Round your final answer up to the nearest whole unit.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Processing Learn About Types Of Audits For Auditors Auditing For Dummies

Authors: Mazie Dannenberg

1st Edition

B097DGKYS7, 979-8524930576

More Books

Students also viewed these Accounting questions