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Question: Woodland Wearables produces two models of a

Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics:
Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics:
The total fixed costs per year for the company are $1,440,000.
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 Basic watches for each Flash watch, what would be the new break-even volume for Woodland Wearables?

The total fixed costs per year for the company are $1,440,000. 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 Basic watches for each Flash watch, what would be the new break-even volume for Woodland Wearables?



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