Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

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

Im A Auditor If You Dont Want A Sarcastic Answer Dont Ask A Stupid Question

Authors: Tim Hansen

1st Edition

B088Y3ZP2D, 979-8618443227

More Books

Students also viewed these Accounting questions

Question

I am paid fairly for the work I do.

Answered: 1 week ago

Question

I receive the training I need to do my job well.

Answered: 1 week ago