Problem $3-74($Algo$)$ Extensions of the CVP Model$-$Multiple Products $($LO $3-2,3-4)$

Orion Languages, Incorporated $($OLI$)$ offers conversational instruction in several languages. Customers can choose from three approaches: Group, Individual, or Intense. Group customers meet as a part of a class at scheduled times. Individual customers receive one$-$on$-$one instruction over the same time frame as a group class, but at times most convenient for them, Intense customers receive focused, individual instruction over two weeks; this approach is often chosen by executives who are relocating to offices located in countries where a new $($to the executive$)$ language is spoken. The courses have the following characteristics:

$$GroupIndividualIntensePrice charged per customer$ $332$$ $2,532$$ $5,080$Variable cost per customer$ $82$$ $1,532$$ $3,330$Expected customers per year$696232232$

The total fixed costs per year for the company are $$602,000.$

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 number of customers.

As a result of recently changed economic conditions, the marketing director at OLI expects many fewer customers for the Intense offering and also a shift from Group classes to Individual instruction. The current thinking at OLI is that there will be the same total number of customers, but the mix will change to about $5$ Group, $4$ Individual, and $1$ Intense customer for every $10$ customers that sign up for a course. Assuming that this revised product mix is the same at the break$-$even point, compute the break$-$even point in number of customers under these new expectations.