Question
In: Accounting
On-the-Go, Inc., produces two models of traveling cases for laptop computers—the Programmer and the Executive. The...
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 | $ | 40 | $ | 40 | ||
| Expected sales (bags) per year | 7,000 | 10,500 | ||||
The total fixed costs per year for the company are $666,000.
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?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
On-the-Go, Inc., produces two models of traveling cases for laptop computers—the Programmer and the Executive. The...
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 $670,000.
Required:
a. What is the anticipated level of profits for
the expected sales volumes?
b. Assuming that the product mix is the same...
On-the-Go, Inc., produces two models of traveling cases for laptop computers—the Programmer and the Executive. The...
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
$
60
$
90
Variable cost
per bag
$
30
$
30
Expected sales
(bags) per year
8,000
12,000
The total fixed costs per year for the company are $670,000.
Required:
a. What is the anticipated level of profits for
the expected sales volumes?
b. Assuming that the product mix is the same...
On-the-Go, Inc., produces two models of traveling cases for laptop computers—the Programmer and the Executive. The...
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 $ 60 $ 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...
On-the-Go, Inc., produces two models of traveling cases for laptop computers—the Programmer and the Executive. The...
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 $ 60 $ 90 Variable cost per bag $ 30 $ 40 Expected sales
(bags) per year 7,000 10,500 The total fixed costs per year for the
company are $668,000. Required:
a. What is the anticipated level of profits for the expected
sales volumes?
b. Assuming that the product mix is the same...
On-the-Go, Inc., produces two models of traveling cases for laptop computers: the Programmer and the Executive....
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
$
40
$
50
Expected sales (bags) per year
8,000
12,000
The total fixed costs per year for the company are $679,000.
Required:
a. What is the anticipated level of profits for
the expected sales volumes?
b. Assuming that the product mix is the...
On-the-Go, Inc., produces two models of traveling cases for laptop computers: the Programmer and the Executive....
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
$
60
$
90
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 $665,000.
Required:
a. What is the anticipated level of profits for
the expected sales volumes?
b. Assuming that the product mix is the...
On-the-Go, Inc., produces two models of traveling cases for laptop computers—the Programmer and the Executive. The...
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
$
60
$
100
Variable cost
per bag
$
20
$
40
Expected sales
(bags) per year
8,000
12,000
The total fixed costs
per year for the company are $669,000.
Required:
a.
What is the anticipated level of profits for the expected sales
volumes?
b.
Assuming that the product mix is the same...
On-the-Go, Inc., produces two models of traveling cases for laptop computers: the Programmer and the Executive....
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
$
50
Expected sales
(bags) per year
7,000
10,500
The total fixed costs per year for the company are $666,000.
Required:
a. What is the anticipated level of profits for
the expected sales volumes?
b. Assuming that the product mix is the...
On-the-Go, Inc., produces two models of traveling cases for laptop computers: the Programmer and the Executive....
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 $ 50 Expected sales
(bags) per year 8,000 12,000 The total fixed costs per year for the
company are $661,000. Required: a. What is the anticipated level of
profits for the expected sales volumes? b. Assuming that the
product mix is the...
2. On-the-Go, Inc., produces two models of traveling cases for laptop computers: the Programmer and the...
2. 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
$
60
$
100
Variable cost per bag
$
20
$
50
Expected sales (bags) per year
8,000
12,000
The total fixed costs per year for the company are $678,000.
Required:
a. What is the anticipated level of profits for
the expected sales volumes?
b. Assuming that the product mix is...
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