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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 | $ 300 | $ 475 |
| Variable cost per watch | $ 220 | $ 235 |
| Expected sales (watches) per year | 30,000 | 10,000 |
The total fixed costs per year for the company are $1,488,000.
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?
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Wiley CIA Essentials Of Internal Auditing Part 1 Exam Review 2023
Authors: S. Rao Vallabhaneni
1st Edition
1119987148, 978-1119987147
