Solution-What would be the new break- even volume for

What would be the new break- even volume for on-the-go

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Reference no: EM133122389

Question - Problem - Extensions of the CVP Model-Multiple Products - On-the-Go, Inc., produces two models of traveling cases for laptop computers-the Programmer and the Executive. The bags have the following characteristics.

	Programmer	Executive
Selling price per bag	$60	$90
Variable cost per bag	$20	$40
Expected sales (bags) per year	7,000	10,500

The total fixed costs per year for the company are $679,000.

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?

Reference no: EM133122389

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What would be the new break- even volume for on-the-go

Reference no: EM133122389

Reference no: EM133122389

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