Macready Company is considering introducing a new compact disc player model at a price of $ 105 per unit. Macready's controller has compiled the following incremental cost information based on an estimate of 120,000 units of sales annually for the new product: Direct materials cost $ 3,600,000 Direct labor cost $ 2,400,000 Variable manufacturing support $ 1,200,000 Sales commission 10% of sales Fixed cost $ 2,000,000 The average inventory levels for the new product are estimated as follows: Raw materials -2 months of production Work in progress (100% complete for materials and 50% complete for labor and variable manufacturing support) -1 month of production Finished goods -2 months of production Annual inventory carrying costs not included in the variable manufacturing support listed earlier are estimated to be 12% of inventory value. In addition, the sales manager expects the introduction of the new model to result in a reduction in sales of the existing model from 300,000 to 240,000 units. The contribution margin for the old product is $ 20 per unit. (a) Determine the total impact on Macready's profit from the introduction of the new product. (b) Should Macready's introduce the new product? Explain. (c) Determine the breakeven point (in units) for the new product. Assume that sales of the old product decrease by one unit for every two-unit increase in the sale of the new product.