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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 $ 40 $ 40
Expected sales (bags) per year 8,000 12,000

The total fixed costs per year for the company are $668,000

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?

What is the anticipated level of profits for the expected sales volumes?

Anticipated profit   

Assuming that the product mix is the same at the break-even point, compute the break-even point

Break-even point units

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?

Break-even point. units
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