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

BasicFlashSelling price per watch$ 420$ 535Variable cost per watch$ 340$ 295Expected sales (watches) per year66,00022,000

The total fixed costs per year for the company are $1,603,200.

Required:

1. What is the anticipated level of profits for the expected sales volumes?
2. Assuming that the product mix is the same at the break-even point, compute the break-even point in units.
3. 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?