Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics: Basic Flash Selling price per watch $ 270 $ 460 Variable cost per watch $ 190 $ 220 Expected sales (watches) per year 21,000 7,000 The total fixed costs per year for the company are $1,459,200. Required: What is the anticipated level of profits for the expected sales volumes? Assuming that the product mix is the same at the break-even point, compute the break-even point in units. If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new break-even volume for Woodland Wearables? 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 in units. Break-even point? units C) If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new break-even volume for Woodland Wearables? Break--even point? units
Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics: Basic Flash Selling price per watch $ 270 $ 460 Variable cost per watch $ 190 $ 220 Expected sales (watches) per year 21,000 7,000 The total fixed costs per year for the company are $1,459,200. Required: What is the anticipated level of profits for the expected sales volumes? Assuming that the product mix is the same at the break-even point, compute the break-even point in units. If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new break-even volume for Woodland Wearables? 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 in units. Break-even point? units C) If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new break-even volume for Woodland Wearables? Break--even point? units
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 2PB: Mortech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and...
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Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics:
| Basic | Flash | |
|---|---|---|
| Selling price per watch | $ 270 | $ 460 |
| Variable cost per watch | $ 190 | $ 220 |
| Expected sales (watches) per year | 21,000 | 7,000 |
The total fixed costs per year for the company are $1,459,200.
Required:
- What is the anticipated level of profits for the expected sales volumes?
- Assuming that the product mix is the same at the break-even point, compute the break-even point in units.
- If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new break-even volume for Woodland Wearables?
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 in units.
Break-even point? units
C) If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new break-even volume for Woodland Wearables?
Break--even point? units
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