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Noodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics: The total fixed costs per
Noodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics:
The total fixed costs per year for the company are $
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 breakeven point, compute the breakeven point in units.
c If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new breakeven volume for
Woodland Wearables?
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What is the anticipated level of profits for the expected sales volumes?
Anticipated profit
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