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Sundial, Inc, produces two models of sunglasses; AU and NZ. The sunglasses have the following characteristics; Selling price per unit Variable cost per unit Expected

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Sundial, Inc, produces two models of sunglasses; AU and NZ. The sunglasses have the following characteristics; Selling price per unit Variable cost per unit Expected units sold per year60,000 AU $160 60 NZ $160 60,000 40,000 The total fixed costs per year for the company are $2,208,000. Required: What is the anticipated level of profits for the expected sales volumes? Assuming that the product mix is the same at the break-even point, compute the break-even point. If the product sales mix were to change to four pairs of AU sunglasses for each pair of NZ sunglasses, what would be the new break-even volume for Sundial, Inc.? a. b. c

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