18) Venkat Company has provided the following information regarding the two products that it sells:

	Jet Boats	Ski Boats
Sales price per unit	$8,000	$20,000
Variable cost per unit	$4,800	$14,000

Annual fixed costs are $280,000.

How many units must be sold in order for Venkat to breakeven, assuming that Venkat sells five jet boats for every two ski boats sold?

A) 70 jet boats and 28 ski boats

B) 50 jet boats and 20 ski boats

C) 20 jet boats and 50 ski boats

D) 45 jet boats and 28 ski boats

Note: Supporting computations are required for this problem. Failure to do so will result in loss of points.

19) White Marsh Company has prepared the following sales budget:

Month	Budgeted Sales
March	$200,000
April	180,000
May	220,000
June	260,000

Cost of goods sold is budgeted at 60% of sales and the inventory at the end of February was $36,000. Desired inventory levels at the end of each month are 20% of the next month's cost of goods sold. What is the desired beginning inventory on June 1?

A) $52,000

B) $26,400

C) $43,200

D) $31,200

Note: Supporting computations are required for this problem. Failure to do so will result in loss of points.