FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The total fixed costs per year for the company are $674,000.

 

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 nine Programmer-style bags for each Executive-style bag, what would be the new break-even volume for On-the-Go?

a

What is the anticipated level of profits for the expected sales volumes?

 
 
 
 
Anticipated profit

 

b

Assuming that the product mix is the same at the break-even point, compute the break-even point. (Round your final answer up to the nearest whole unit.)

 
 
 
 
Break-even point  

units

 

c

If the product sales mix were to change to nine Programmer-style bags for each Executive-style bag, what would be the new break-even volume for On-the-Go? (Round your final answer up to the nearest whole unit.)

 
 
 
 
Break-even point   units
On-the-Go, Inc., produces two models of traveling cases for laptop computers-the Programmer and the Executive. The bags have the
following characteristics.
Executive
Selling price per bag
Variable cost per bag
Expected sales (bags) per year
Programmer
$
$
$
$
70
100
40
50
7,000
10,500
The total fixed costs per year for the company are $674,000.
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 nine Programmer-style bags for each Executive-style bag, what would be the new break-
even volume for On-the-Go?
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Transcribed Image Text:On-the-Go, Inc., produces two models of traveling cases for laptop computers-the Programmer and the Executive. The bags have the following characteristics. Executive Selling price per bag Variable cost per bag Expected sales (bags) per year Programmer $ $ $ $ 70 100 40 50 7,000 10,500 The total fixed costs per year for the company are $674,000. 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 nine Programmer-style bags for each Executive-style bag, what would be the new break- even volume for On-the-Go?
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