PLEASE ANSWER (c) B and E. Thank you!
CURRENT DESIGNS
Current Designs manufactures two different types of kayak, rotomolded kayaks and composite kayaks.
The following information is available for each product line.
			Rotomolded		Composite
	Sales price/unit		$950		$2,000
	Variable costs/unit		$570		$1,340
The company's fixed costs are $820,000. An analysis of the sales mix identifies that Rotomolded kayaks
make up 80% of the total units sold.
Instructions
(a)	Determine the weighted-average unit contribution margin for Current Designs.
(b)	Determine the break-even points in units for Current Designs and identify how many units of each
	type of kayak will be sold at the break-even point. (Round to the nearest whole number.)
(c )	Assume that the sales mix changes, and rotomolded kayaks now make up 70% of total units sold.
	Calculate the total number of units that would need to be sold to earn a net income of $2,000,000
	and identify how many units of each type of kayak will be sold at this level of income. (Round to the
	nearest whole number.)
(d)	Assume that Current Designs will have sales of $3,000,000 with two-thirds of the sales dollars in
	rotomolded kayaks and one-third of the sales dollars in composite kayaks. Assuming $660,000 of fixed
	costs are allocated to the rotomolded kayaks and $160,000 to the composite kayaks, prepare a CVP
	income statement for each product line.
(e )	Would Current Designs be more profitable if they changed their sales mix, where 50% of their sales came from Rotomolded and
	50% of their sales came from Composit?
(a)	Determine the weighted-average unit contribution margin for Current Designs.
			Rotomolded Kayaks		Composite Kayaks
	Sales price/unit		950		2000
	Variable costs/unit		570		1340
	Unit Contribution margin (UCM)		380		660
	Product mix		80%		20%
	Weighted Average UCM		304	+	132	436
(b)	Determine the break-even points in units for Current Designs and identify how many units of each
	type of kayak will be sold at the break-even point. (Round to the nearest whole number.)
	Fixed costs		820000
	Weighted Average UCM		436
	Breakeven units		1,881
			Rotomolded Kayaks		Composite Kayaks
	Breakeven unit distribution		1,505		376
(c ) A	Assume that the sales mix changes, and rotomolded kayaks now make up 70% of total units sold.
	Calculate the total number of units that would need to be sold to earn a net income of $2,000,000
	and identify how many units of each type of kayak will be sold at this level of income. (Round to the
	nearest whole number.)
	Target net income in units:
			Rotomolded Kayaks		Composite Kayaks
	Sales price/unit		950		2000
	Variable costs/unit		570		1340
	Unit Contribution margin (UCM)		380		660
	Product mix		70%		30%
	Weighted Average UCM		266	+	198	464
(c) B	Required sales in units:
	Total fixed costs		Value		Value
	Target net income		Value		Value
	Total required sales (dollars)		?		?
	Weighted Average UCM		?		?
	Required sales in units		?		?
(d)	Assume that Current Designs will have sales of $3,000,000 with two-thirds of the sales dollars in
	rotomolded kayaks and one-third of the sales dollars in composite kayaks. Assuming $660,000 of fixed
	costs are allocated to the rotomolded kayaks and $160,000 to the composite kayaks, prepare a CVP
	income statement for each product line.
			Rotomolded Kayaks		Composite Kayaks
	Sales		2,000,000		1,000,000
	Variable Costs		1200000		670000
	Contribution Margin		800000		330000
	Fixed Costs		660,000		160,000
	Net Income		$140,000		$170,000
( e )	Would Current Designs be more profitable if they changed their sales mix, where 50% of their sales came from Rotomolded and
	50% of their sales came from Composite? Please explain.