On-the-Go, Inc., produces two models of traveling cases for laptop computersthe Programmer and the Executive. The bags have the following characteristics.

Selling price per bag	$	70		$	100
Variable cost per bag	$	40		$	50
Expected sales (bags) per year		8,000			12,000

The total fixed costs per year for the company are $665,000.

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?