On-the-go inc produces two models of traveling cases for

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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	$	70	$	100
Variable cost per bag	$	30	$	40
Expected sales (bags) per year		8,000		12,000

The total fixed costs per year for the company are $819,000.

(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: EM13586717

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