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 $ $330$ $ $490$

Variable cost per watch $ $250$ $ $250$

Expected sales $($watches$)$ per year $39,00013,000$

The total fixed costs per year for the company are $$1,516,800.$

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 in units.

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?

Answer rating: 100% (QA)

Alright lets address each part of the problem stepbystep Part 1 Anticipated Level of Profits for the Expected Sales Volumes Given Data Basic Model Sel... View the full answer