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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
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 year AU $ 140 S 80 75,000 NZ $ 140 $ 40 25,000 The total fixed costs per year for the company are $2,380,000. 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.? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the anticipated level of profits for the expected sales volumes? Anticipated profit
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