Thompson Company produces scientific and business calculators. Eor the coming year, Thompson expects to sell 200,000 scientific calculators and 100,000 business calculators. A segmented income statement for the two products is given below:

Required:
1. Compute the number of scientific calculators and the number of business calculators that must be sold to break even.
2. Using information only from the total column of the income statement, compute the sales revenue that must be generated for the company to break even.

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Scientific Business Total Sales $5,000,000 $2,000,000 $7,000,000 Less: Variable costs 2,400,000 Contribution margin $2,600,000 900,000 $1,100,000 3,300,000 Less: Direct fixed costs 1,200,000 960,000 Segment margin $1,400,000 $ 140,000 Less: Common fixed costs Operating income $3,700,000 2,160,000 $1,540,000 800,000 $ 740,000