Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics:

	Basic	Flash
Selling price per watch	$ 370	$ 510
Variable cost per watch	$ 290	$ 270
Expected sales (watches) per year	51,000	17,000

The total fixed costs per year for the company are $1,555,200.

Required:

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

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

If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new break-even volume for Woodland Wearables?