Problem $3-73($Algo$)$ Extensions of the CVP Model$-$Multiple Products $($LO $3-4)$

Rossiter Fittings produces two models of pipe fittings for underwater lines. The two models $($RF$-12$ and RF$-25)$ have the following

characteristics, as developed by a product cost analyst:

The total fixed costs per year for the company are $$1,141,680.$

Requlred:

$.$ 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$.$ The head of marketing agrees with the data provided by the cost analyst but believes that the sales of the RF$-12$ model will be

double in units from what the cost analyst predicts. The head of marketing agrees that the total unit volume is likely to be as

predicted by the cost analyst. What would be the break$-$even point of sales in units using the assumptions of the head of marketing?

Complete this question by entering your answers in the tabs below.

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

Anticipated profit