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Exercise 3-53 (Algo) Multiproduct CVP Analysis (LO 3-4) Pierson Pet Products produces two models of dog beds: Basic and Custom. Price, cost and expected
Exercise 3-53 (Algo) Multiproduct CVP Analysis (LO 3-4) Pierson Pet Products produces two models of dog beds: Basic and Custom. Price, cost and expected sales volume data for the two models are as follows: Selling price per bed Variable cost per bed Expected sales (beds) Basic $ 27.00 Custom $ 62.00 $ 20.00 84,000 $ 41.00 56,000 The total fixed costs for the company are $406,980. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the expected product mix applies regardless of total sales, compute the break-even volume. c. If the product sales mix were to change to three Basic beds for each Custom bed, what would be the new break-even volume? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the anticipated level of profits for the expected sales volumes? Profit
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