Sundial, Inc., produces two models of sunglassesAU and NZ. The sunglasses have the following characteristics. AU NZ Selling price per unit $ 420 $ 420 Variable cost per unit $ 220 $ 180 Expected units sold per year 60,000 40,000 The total fixed costs per year for the company are $5,616,000.

Required:

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

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

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.?