Pierson Pet Products produces two models of dog beds: Basic and Custom. Price, cost, and expected sales volume data for the two models are as follows:

Required

The total fixed costs for the company are $396,900.

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

b. Assuming that the expected product mix applies regardless of total sales, compute the breakeven volume.

c. If the product sales mix were to change to three Basic beds for each Custom bed, what would be the new break-even volume? 

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Selling price per bed.. Variable cost per bed Expected sales (beds). Basic $19 $12 36,000 Custom $54 $33 24,000