I need help on the yellow highlighted area.

Break-Even Analysis Annasam Company is a producer of kayaks. There are two lines of kayaks: one for professional outfitters and the second for committed recreationalists. The cost structure is as follows: Line Professional $4,000 Price Line Amateur $2,800 $900,000 $2,000 FC VC $2,200 .15 Des Contribution Margin 20 Compute the break-even units and break-even dollar contribution needed as follows: 1. If Annasam only sells the professional line. 500 units & $2,000,00 2. If Annasam only sells the amateur line. 1125 units & $3,150,000 3. If Annasam sells both lines (in equal units). about 346 units Annasam is trying to woo investors to its business, but investors would like to see at least a 15% return on investment on the professional line and 20% return on the amateur line. 1. What are the unit requirements given the three parameters above? 2. Annasam's annual unit sales average 1,000 units for each line. Are there any marketing decisions that should be made given the above results? Net Present Value Analysis Annasam Company believes that it can improve its cost per unit if it invests in a new molding machine for $500,000. The life of the machine is 6 years, and the salvage value is $50,000. Annasam's WACC is 7.5%. The additional income (gross income) generated from this project is $100,000. Annasam depreciates at a rate of 12% and its tax rate is 35%. Is this a project worth considering based on Net Present Value analysis? What is the project's internal rate of return? Equipment Life Depreciation Salvage Value Income Increase Cost of Capital Tax Rate $500,000 | 6 years 12% $50,000 $100,000 7.5% 35%