What is the anticipated level of profits for expected sales

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Reference no: EM131810787

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	$ 90
Variable cost per bag	$ 30	$ 30
Expected sales (bags) per year	7,000	10.500

The total fixed costs per year for the company are $664,000.

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: EM131810787

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