If the product sales mix were to change to nine

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Unformatted text preview: ns related to the chapters 3-48. Extensions of the CVP Model—Multiple Products On-the-Go, Inc., produces two models of traveling cases for laptop computers: the Programmer in Part One. and the Executive. The bags have the following characteristics: Programmer mhhe.com/lanen3e cor50782_ch01_001-072.indd 1 Selling price per bag . . . . . . . . . . . Variable cost per bag . . . . . . . . . . . Expected sales (bags) per year . . . $70 $30 8,000 Executive $100 $40 12,000 1 10/5/09 11:09:29 PM The total fixed costs per year for the company are $819,000. lan27114_ch03_080-109.indd 104 10/23/09 5:25:35 AM REVISED PAGES Chapter 3 Fundamentals of Cost-Volume-Profit Analysis 1 105 Required PAR a. What is the anticipated level of profits for the expected sales volumes? T 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 Executivestyle bag, what would be the new break-even volume for On-the-Go? Orientation 3-49. Extensions of the CVP Model—Multiple Products Sundial, Inc., produces two models of sunglasses: AU and NZ. The sunglasses have the following characteristics: AU Selling price per unit . . . . . . . . Variable cost per unit . . . . . . . . Expected units sold per year . . NZ 60,000 (L.O. 4) 40,000 Preparing and Organizing Yourself $80 $80 $30 $40 for Success in College The total fixed costs per year for the company are $1,104,000. 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.? CHAPTERS IN PART ONE 3-50. Extensions of the CVP Model—Multiple Products (L.O. 4) Sell Block prepares three types of simple tax returns: individual, partnerships, and (small) corpora1 Making Yourself Successful in College tions. The tax returns have the following characteristics: S Individuals Price charged per tax return . . . . . . . . . . . . Variable cost per tax return (including wage paid to tax preparer) . . . . . . . . . . . Expected tax returns prepared per year . . $200 $180 60,000 2 Approaching College Reading and Partnerships Corporations Developing a College-Level Vocabulary $1,000 3 $2,000 $900 Approaching $1,800 Assignments: College 4,000 16,000 Reading Textbooks and Following Directions The total fixed costs per year for the company are $3,690,000. 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. Suppose the product sales mix changes so that, for every ten tax returns prepared, six are for individuals, one is for a partnership, and three are for corporations. Now what is the breakeven volume for Sell Blo...
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This note was uploaded on 02/07/2014 for the course MIS 304 taught by Professor Mejias during the Spring '07 term at University of Arizona- Tucson.

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