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 $ 420 $ 535 Variable cost per watch $ 340 $ 295 Expected sales (watches) per year 66,000 22,000 The total fixed costs per year for the company are $1,603,200. 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?

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?