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On-the-Go, Inc., produces two models of traveling cases for laptop computers: the Programmer and the Executive. The bags have the following characteristics: Selling price per
On-the-Go, Inc., produces two models of traveling cases for laptop computers: the Programmer and the Executive. The bags have the following characteristics: Selling price per bag Variable cost per bag Expected sales (bags) per year Programmer 70 40 8,000 Executive 9.0 30 12.000 $ $ S 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? Anticipated profit 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.) Break-even point units 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.) Break-even point units
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