Question: Problem 3-63 (Static) Extensions of the CVP Model-Multiple Products (LO 3-4) On-the-Go, Inc., produces two models of traveling cases for laptop computersthe Programmer and the

Problem 3-63 (Static) Extensions of the CVP Model-Multiple Products (LO 3-4) On-the-Go, Inc., produces two models of traveling cases for laptop computersthe Programmer and the Executive. The bags have the following characteristics. Programmer Executive Selling price per bag $ 70 $ 100 Variable cost per bag $ 30 $ 40 Expected sales (bags) per year 8,000 12,000 The total fixed costs per year for the company are $819,000. 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 nine Programmer-style bags for each Executive-style bag, what would be the new break-even volume for On-the-Go?

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