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Sundial, Inc., produces two models of sunglasses-AU and NZ. The sunglasses have the following characteristics. AU NZ Selling price per unit $ 420 $ 420
Sundial, Inc., produces two models of sunglasses-AU and NZ. The sunglasses have the following characteristics. AU NZ Selling price per unit $ 420 $ 420 Variable cost per unit $ 120 $ 210 Expected units sold per year 40,000 60,000 The total fixed costs per year for the company are $11,562,000. 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 four pairs of AU sunglasses for each pair of NZ sunglasses, what would be the new break-even volume for Sundial, Inc.? Required A Required B Required C What is the anticipated level of profits for the expected sales volumes? Anticipated profit Required A Required B Required C Assuming that the product mix is the same at the break-even point, compute the break-even point. Break-even point units Required A Required B Required C 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.? Break-even point units
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