Sundial, Inc., produces two models of sunglasses: AU and NZ. The sunglasses have the following characteristics:

	AU			NZ
Selling price per unit	$	120		$	120
Variable cost per unit	$	60		$	40
Expected units sold per year		60,000			20,000

The total fixed costs per year for the company are $4,160,000.

Required:

a. What is the anticipated level of profits for the expected sales volumes?

anticpated profit

b. Assuming that the product mix is the same at the break-even point, compute the break-even point.

break even point in units

c. If the product sales mix were to change to four pairs of AU sunglasses for each pair of NZ sunglasses, what would be the new break-even volume for Sundial, Inc.?

break even point in units