business.

Common fixed costs $($fixed costs not traceable to either cabinet$)$ are $$35,000.$ Currently, for every three Grade I cabinets sold, seven Grade II cabinets are sold.

Required:

Note: Round your answers to the nearest whole number.

Calculate the number of Grade I and Grade II cabinets that are expected to be sold during the current year.

Grade I

units

Grade II

units

Calculate the number of Grade I and Grade II cabinets that must be sold for Artistic to break even.

Grade I

units

Grade II

units

Compute the effect on operating income.

$

Calculate the new break$-$even point. Assume the machines are purchased at the beginning of the sixth month. Fixed costs for the company are incurred uniformly throughout the year.

Grade I

$x$ units

Grade II

units

change the sales mix to $1$:$1.$ The retail outlet is also expected to increase sales by $30\%.$ Assume that the outlet is opened at the beginning of the sixth month.

Calculate the effect on the company's expected profits for the current year.