Armidale Company (AC) sells products M and B. ACs 2022 books has the following information:

Product M Product B

Sale Price $26.80 $22.00

Variable Cost $18.40 $14.80

When operating within the full production capacity, ACs total fixed costs are $36,400.

Required: Work out the following:

a. ACs sales mix ratio is 2:1 for M to B (for every 2 units sale of M, AC sells 1 unit of B). Work out ACs sale in units at breakeven point for M and B. (round off your answer to complete units).

b. Assuming the companys sales mix ratio remains as in a above and a total sales level of 7,500 units, what is ACs total operating income for the year?