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Sundial, Inc., produces two models of sunglasses-AU and NZ. The sunglasses have the following charac Selling price per unit AU $ 280 NZ $
Sundial, Inc., produces two models of sunglasses-AU and NZ. The sunglasses have the following charac Selling price per unit AU $ 280 NZ $ 280 Variable cost per unit $ 140 120 Expected units sold per year 70,000 30,000 The total fixed costs per year for the company are $10,512,000. 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, break-even volume for Sundial, Inc.?
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