Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 11 Aug 2017 My Price 9.00

On-the-Go, Inc

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?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 10:08 PM My Price 9.00

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