Rossiter Fittings produces two models of pipe fittings for underwater lines. The two models (RF-12 and RF-25) have the following characteristics, as developed by
Rossiter Fittings produces two models of pipe fittings for underwater lines. The two models (RF-12 and RF-25) have the following characteristics, as developed by a product cost analyst: Selling price per unit Variable cost per unit Expected units sold per year. The total fixed costs per year for the company are $1,056,480. RF-12 Required A $327 $247 3,285 Required B 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. The head of marketing agrees with the data provided by the cost analyst but believes that the sales of the RF-12 model will be double in units from what the cost analyst predicts. The head of marketing agrees that the total unit volume is likely to be as predicted by the cost analyst. What would be the break-even point of sales in units using the assumptions of the head of marketing? Required C RF-25 Complete this question by entering your answers in the tabs below. $472 $312 11,315 < Required A What is the anticipated level of profits for the expected sales volumes? Anticipated profit Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required C Assuming that the product mix is the same at the break-even point, compute the break-even point. Note: Do not round your intermediate values. Round your answer to the nearest whole unit. Break-even point units < Required A Required C > Complete this question by entering your answers in the tabs below. Required B Break-even point Required A The head of marketing agrees with the data provided by the cost analyst but believes that the sales of the RF-12 model will be double in units from what the cost analyst predicts. The head of marketing agrees that the total unit volume is likely to be as predicted by the cost analyst. What would be the break-even point of sales in units using the assumptions of the head of marketing? Note: Do not round your intermediate values. Round up your answer to the nearest whole unit. Required C units < Required B Required C > Show less
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