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 $ 320 $ 485

Variable cost per watch $ 240 $ 245

Expected sales (watches) per year 36,000 12,000

The total fixed costs per year for the company are $1,507,200.

Required:

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