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The new break even volume

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Reference no: EM13876794

Sundial, Inc., produces two models of sunglasses: AU and NZ. The sunglasses have the following characteristics: 

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The total fixed costs per year for the company are $2,208,000. 

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 four pairs of AU sunglasses for each pair of NZ sunglasses, what would be the new break even volume for Sundial,Inc.?

Reference no: EM13876794

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