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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. 90 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. 90 Selling price per bag Variable cost per bag Expected sales (bags) per year Programmer Executive $ 60 $ 30 30 8,000 12,000 The total fixed costs per year for the company are $675,000. 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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