Sundial, Inc., produces two models of sunglasses-AU and NZ. The sunglasses have the following characteristics. Selling...

 

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Sundial, Inc., produces two models of sunglasses-AU and NZ. The sunglasses have the following characteristics. Selling price per unit Variable cost per unit Expected units sold per year $ $ AU 360 68 50,000 $ $ NZ 368 180 75,000 The total fixed costs per year for the company are $5,244,000. 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 four pairs of AU sunglasses for each pair of NZ sunglasses, what would be the new break-even volume for Sundial, Inc.? What is the anticipated level of profits for the expected sales volumes? Anticipated profit Required A Required B Required C Break-even point Assuming that the product mix is the same at the break-even point, compute the break-even point. Break-even point units Required A Required C units < Required A Required A Required B If the product sales mix were to change to four pairs of AU sunglasses for each pair of NZ sunglasses, what would be the new break-even volume for Sundial, Inc.? Required B > < Required B Required C > Required C> Sundial, Inc., produces two models of sunglasses-AU and NZ. The sunglasses have the following characteristics. Selling price per unit Variable cost per unit Expected units sold per year $ $ AU 360 68 50,000 $ $ NZ 368 180 75,000 The total fixed costs per year for the company are $5,244,000. 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 four pairs of AU sunglasses for each pair of NZ sunglasses, what would be the new break-even volume for Sundial, Inc.? What is the anticipated level of profits for the expected sales volumes? Anticipated profit Required A Required B Required C Break-even point Assuming that the product mix is the same at the break-even point, compute the break-even point. Break-even point units Required A Required C units < Required A Required A Required B If the product sales mix were to change to four pairs of AU sunglasses for each pair of NZ sunglasses, what would be the new break-even volume for Sundial, Inc.? Required B > < Required B Required C > Required C>

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BreakEven Analysis The breakeven point is usually determined in units and dollars by using the values of contribution ... View the full answer