1.

Delta Company produces two types of faucet, standard and deluxe. The standard faucet sells for $20 per unit and has variable costs of $12 per unit. The deluxe faucet sells for $40 per unit and has variable costs of $25 per unit. Total fixed costs are $9,150. Delta expects a product mix of 2 standard units sold for every 3 deluxe units sold.

a. Calculate the combined breakeven in units.

b. At the breakeven point, how many of each unit will be sold?

c. If Delta sells 1,000 units, calculate Delta's net income.