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Pierson Pet Products produces two models of dog beds: Basic and Custom. Price, cost and expected sales volume data for the two models are
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 Custom $ 72.00 $ 37.00 $ 30.00 144,000 $ 51.00 96,000 The total fixed costs for the company are $419,580. 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 B Required C What is the anticipated level or profits for the expected sales volumes? Profit Required A Required B Required C Assuming that the expected product mix applies regardless of total sales, compute the break-even volume. Note: In your computations, round up the total units to break-even to the nearest whole number and round other intermediate calculations to 2 decimal places. Break-Even Volume Basic beds Custom beds Required A Required B Required 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? Note: In your computations, round up the total units to break-even to the nearest whole number and round other intermediate calculations to 2 decimal places. Basic beds Custom beds Break-Even Volume
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