Tennis World manufactures and sells two tennis racquets Gamma and Kennex. The following data are provided:

	Gamma	Kennex
Sales mix in units	60%	40%
Selling price	$310	$360
Variable manufacturing costs	$115	$140

Annual fixed costs of the company are $8,200,000 and the budgeted sales is $15,000,000. The company is subject to a tax rate of 30%.

Required: (i) Calculate the unit contribution margin for each product type. (1 mark)

(ii) Determine the weighted-average unit contribution margin. (1 mark)

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(iii) Calculate the breakeven volume in units and in sales dollars - in total and for each product. Assume a constant sales mix. (3 marks)

(iv) How many units of each product must be sold to earn a target net profit after tax of $1,435,000? Assume a constant sales mix. (3 marks)

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(v) Determine the companys safety margin in dollars. (1 mark)

(vi) Provide TWO limitations of cost volume profit analysis method. (2 marks)