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Problem 3 . 7 3 ( Algo ) Extenslons of the CVP Model - Multiple Products ( LO 3 . 4 ) Rossiter Fittings produces
Problem Algo Extenslons of the CVP ModelMultiple Products LO
Rossiter Fittings produces two models of pipe fittings for underwater lines. The two models RF and RF
have the following characteristics, as developed by a product cost analyst:
The total fixed costs per year for the company are $
Required:
a What is the anticlpated level of profits for the expected sales volumes?
b Assuming that the product mlx is the same at the breakeven point, compute the breakeven point in
units.
c The head of marketing agrees with the data provided by the cost analyst but believes that the sales of
the RF model will be double in units from what the cost analyst predicts. The head of marketing
agrees that the total unlt volume is likely to be as predicted by the cost analyst. What would be the
breakeven point of sales in unlts using the assumptions of the head of marketing?
Complete this question by entering your answers in the tabs below.
Required A
What is the anticipated level of profits for the expected sales volumes?
Anticipated profit
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