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 $ 380 $ 515 Variable cost per watch $ 300 $ 275 Expected sales (watches) per year 54,000 18,000 The total fixed costs per year for the company are $1,564,800.

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?