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

Programmer Executive

Selling price per bag $ 60 $ 90

Variable cost per bag $30 $ 30

Expected sales (bags) per year 7,000 10,500

The total fixed costs per year for the company are $664,000.

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?