Spalding produces acrylic and polycarbonate basketball backboard and rim sets. Assume the following represents sales information for last year. Acrylic Polycarbonate Total Units manufactured and sold 2,400 4,200 6,600 Sales revenue $720,000 $882,000 $1,602,000 Variable costs 416,100 545,100 961,200 Contribution margin $303,900 $336,900 $640,800 Fixed costs (510,756) Before-tax profit 130,044 Income taxes (20%) 26,009 After-tax profit $104,035 Required

a. Determine the current break-even point in sales dollars. $Answer

b. With the current product mix and break-even point, determine the average unit contribution margin and unit sales. Note: Round average unit contribution margin to two decimal places (for example, round 7.555 to 7.56). Note: Round your answer for unit sales up to the nearest whole unit (for example, round 41.2 to 42). Average unit contribution margin: $Answer Unit sales: Answer

c. Sales representatives believe that the total sales will increase to 6,900 units, with the sales mix likely shifting to 80% polycarbonate and 20% acrylic over the next few years. Evaluate the desirability of this projection. Profitability will Answer with the projection shift.