MacFarlane Printer Machines (MPM) builds three computer printer models: Inkjet, Laser, and Color Laser. Information for these three products is as follows:

	Inkjet	Laser	Color Laser	Total
Selling price per unit	$255	$420	$1,680
Variable cost per unit	$105	$158	$840
Expected unit sales (annual)	12,600	6,300	2,100	21,000
Sales mix	60%	30%	10%	100%

Total annual fixed costs are $5,250,000. Assume that the sales mix remains the same at all levels of sales.

A. How many printers in total must be sold to break even?

B. How many units of each printer must be sold to break even?

C. How many printers in total must be sold to earn an annual profit of $1,000,000?

D. How many units of each printer must be sold to earn an annual profit of $1,000,000?

Use the information from above perform a sensitivity analysis using Excel. Assume that each scenario that follows is independent of the others. Unless stated otherwise, the variables are the same as in the base case.

1. How will total profit change if the Laser sales price increases by 10%?
2. How will total profit change if the Inkjet sales volume decreases by 4,000 units and the sales volume of other products remains the same?
3. How will total profit change if fixed costs decrease by 20%?