Professor Hasan is CEO of Smart Tech Inc. ST produces wearable technology for the governmental agencies. They currently sell product "Z" for $100. Fixed costs related to this product are $297,000 and variable costs are $57 per product. ST wants to manufacture a new product product "GI". Introductory market research shows that she can sell product "GI" for $25 each. Fixed costs would be $145,000 a year and variable costs would amount to $10 per phone.

(1) What would the contribution margin ratio be for both products individually and in aggregate?

(2) What sales volume in units would ST need to break-even?

(3) What sales volume in units would Stan need to earn $800,000 profit?

(4) What would be the margin of safety if he sold 25,000 units (use the information calculated in #2)?

5) Should Professor hasaninvest in producing product "GI"? Why or why not?What would your recommended product mix of units to sell- How many of product "Z" vs how many units of product "GI" and why? Provide a detailed explanation and use calculations to support your recommendation.