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Pierson Pet Products produces two models of dog beds: Basic and Custom. Price, cost and expected sales volume data for the two models are
Pierson Pet Products produces two models of dog beds: Basic and Custom. Price, cost and expected sales volume data for the two models are as follows: Basic Custom Selling price per bed $ 33.00 $ 68.00 Variable cost per bed $ 26.00 $ 47.00 120,000 80,000 Expected sales (beds) The total fixed costs for the company are $414,540. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the expected product mix applies regardless of total sales, compute the break-even volume. c. If the product sales mix were to change to three Basic beds for each Custom bed, what would be the new break-even volume? Complete this question by entering your answers in the tabs below Required A Required B Required C Assuming that the expected product mix applies regardless of total sales, c Note: In your computations, round up the total units to break-even to the n intermediate calculations to 2 decimal places. Break-Even Volume Basic beds Custom beds
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