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Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics: BasicFlashSelling price per watch$ 250$
Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics:
BasicFlashSelling price per watch$ 250$ 450Variable cost per watch$ 170$ 210Expected sales (watches) per year15,0005,000The total fixed costs per year for the company are $1,440,000.
- 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?
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Accounting A Smart Approach
Authors: Mary Carey, Cathy Knowles
4th Edition
0198844808, 9780198844808
