NN Desks manufactures office desks and sell to major retailers. It currently produces one model, the Narko, and it is priced at $600. Variable manufacturing costs are $210 per unit and variable shipping costs are $60 per unit. Fixed costs are $2,500,000. (Details in chart below for ease of cut and paste) In 2020, it sold 9,800 units of the Narko. Due to Covid, one of NN's major customers, Cliffs Corporation, has asked if NN could manufacture a lower end style of desk for businesses who are purchasing desk for employees who work from home, the Covidarko in for 2021. Cliffs will pay $350 for the Covidarko. The variable costs to produce the new desk are estimated to be $180 per unit and Cliffs will pay for the shipping. NN has sufficient manufacturing capacity and will not incur any additional fixed costs. (Details in chart). NN estimates that in 2021, it will sell 9,000 units of the Narko and 3,000 units of Covidarko. The president of NN checked the impact of accepting the Cliffs order on the breakeven sales revenues for 2021 and was surprised to find that the dollar sales revenue required to breakeven using the sale mix for 2021 appeared to increase. She was not sure that her numbers were correct, but if they were, she felt inclined to reject the Cliffs order. She has asked for your advice. Fixed Costs Selling Price Variable Manufacturing Costs Variable Shipping Costs Contribution Margin $2,500,000 Narko $600 $210 $60 Covidarko $350 $180 SO $170 $330 Units of Narko sold in 2020 Budgeted Units for 2021 Total Fixed Costs each year 9,800 9,000 $2,500,000 3.000 REQUIRED: 1. Calculate the breakeven point in units and sales dollars for 2020. 2. Calculate the breakeven point in units and sales dollars for 2021 at the expected sales mix for each product. Show relevant work. 3. What would you advise the president to do? Support your recommendations with qualitative and quantitative information. Bullet points. (4 marks)