Question
Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics: Basic Flash Selling price per
Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics:
| Basic | Flash | |
|---|---|---|
| Selling price per watch | $ 400 | $ 525 |
| Variable cost per watch | $ 320 | $ 285 |
| Expected sales (watches) per year | 60,000 | 20,000 |
The total fixed costs per year for the company are $1,584,000.
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 in units.
c. If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new break-even volume for Woodland Wearables?
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M Glichkeiten Und Grenzen Der F Rderung Verantwortlichen Handelns Von Wirtschaftspr Fern In Moralisch Relevanten Situationen Eine Theoretische Und And Accounting Studies
Authors: Catharina Schmiele
2012 Edition
383493335X, 978-3834933355
