Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics: Basic $ 390 $310 Flash $ 520 $ 280 57,000 19,000 Selling price per watch Variable cost per watch Expected sales (watches) per year The total fixed costs per year for the company are $1,574,400. 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 in 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? Complete this question by entering your answers in the tabs below. Required C What is the anticipated level of profits for the expected sales volumes? Anticipated profit Required A Required B < Required A Required B >
Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics: Basic $ 390 $310 Flash $ 520 $ 280 57,000 19,000 Selling price per watch Variable cost per watch Expected sales (watches) per year The total fixed costs per year for the company are $1,574,400. 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 in 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? Complete this question by entering your answers in the tabs below. Required C What is the anticipated level of profits for the expected sales volumes? Anticipated profit Required A Required B < Required A Required B >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Gadubhai
Transcribed Image Text:Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics:
Basic
$ 390
$310
57,000
Selling price per watch
Variable cost per watch
Expected sales (watches) per year
The total fixed costs per year for the company are $1,574,400.
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 in 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?
Required A
Complete this question by entering your answers in the tabs below.
Required B
Flash
Required C
$ 520
$ 280
19,000
< Required A
What is the anticipated level of profits for the expected sales volumes?
Anticipated profit
Required B >
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