1) Silver River Company sells Products S and T and has made the following estimates for the coming year:

Product	Unit Selling Price	Unit Variable Cost	Sales Mix
S	$30	$24	60%
T	70	56	40

Fixed costs are estimated at $202,400. Determine:

(a) The estimated sales in units of the overall product necessary to reach the break-even point for the coming year.

(b) The estimated number of units of each product necessary to be sold to reach the break-even point for the coming year.

2) The Keith Company reports the following data.

	Sales	$800,000
	Variable costs	$500,000
	Fixed costs	$250,000

Determine Keith Companys operating leverage.