s Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics: Selling price per watch Variable cost per watch Expected sales (watches) per year The total fixed costs per year for the company are $1,545,600. Basic Required A Required B $360 $ 280 48,000 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 in units. c. If the product sales mix were to change to nine Basic watch

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
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Chapter16: Financial Planning And Control
Section: Chapter Questions
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es Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics: Selling price per watch Variable cost per watch Expected sales (watches) per year The total fixed costs per year for the company are $1,545,600. Basic Required A Required B $360 $ 280 48,000 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 in units. c. If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new break-even volume for Woodland Wearables? Required C Flash Complete this question by entering your answers in the tabs below. $ 505 $265 16,000 What is the anticipated level of profits for the expected sales volumes? Anticipated profit

25
Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics:
Basic
$360
$ 280
48,000
Selling price per watch
Variable cost per watch
Expected sales (watches) per year
The total fixed costs per year for the company are $1,545,600.
Flash
$ 505
$ 265
16,000
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 in units.
c. If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new break-even volume for
Woodland Wearables?
Complete this question by entering your answers in the tabs below.
Required C
Required A
Required B
What is the anticipated level of profits for the expected sales volumes?
Anticipated profit
Transcribed Image Text:25 Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics: Basic $360 $ 280 48,000 Selling price per watch Variable cost per watch Expected sales (watches) per year The total fixed costs per year for the company are $1,545,600. Flash $ 505 $ 265 16,000 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 in units. c. If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new break-even volume for Woodland Wearables? Complete this question by entering your answers in the tabs below. Required C Required A Required B What is the anticipated level of profits for the expected sales volumes? Anticipated profit
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