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348. Extensions of the CVP Model—Multiple Products
OntheGo, 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_001072.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_080109.indd 104 10/23/09 5:25:35 AM REVISED PAGES Chapter 3 Fundamentals of CostVolumeProfit 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 breakeven point, compute the breakeven
point.
c. If the product sales mix were to change to nine Programmerstyle bags for each Executivestyle bag, what would be the new breakeven volume for OntheGo? Orientation 349. 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 breakeven point, compute the breakeven
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 breakeven volume for Sundial, Inc.?
CHAPTERS IN PART ONE 350. 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 CollegeLevel 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 breakeven point, compute the breakeven
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.
 Spring '07
 MEJIAS

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