On-the-Go, Inc., produces two models of traveling cases forlaptop computers: the Programmer and the Executive. The bags havethe following characteristics: Programmer Executive Selling priceper bag $ 70 $ 100 Variable cost per bag $ 30 $ 50 Expected sales(bags) per year 8,000 12,000 The total fixed costs per year for thecompany are $661,000. Required: a. What is the anticipated level ofprofits for the expected sales volumes? b. Assuming that theproduct mix is the same at the break-even point, compute thebreak-even point. (Round your final answer up to the nearest wholeunit.) c. If the product sales mix were to change to nineProgrammer-style bags for each Executive-style bag, what would bethe new break-even volume for On-the-Go? (Round your final answerup to the nearest whole unit.)
