Question
On-the-Go, Inc., produces two models of traveling cases for laptop computersthe Programmerand the Executive. The bags have the following characteristics. ProgrammerExecutiveSelling price per bag$70$100Variable cost
On-the-Go, Inc., produces two models of traveling cases for laptop computersthe Programmerand the Executive. The bags have the following characteristics.
ProgrammerExecutiveSelling price per bag$70$100Variable cost per bag$30$40Expected sales (bags) per year7,00010,500
The total fixed costs per year for the company are $673,000.
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 break-even point, compute the break-even point.
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?
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
13th Edition
8120335643, 136126634, 978-0136126638
