HC Company manufactures different sizes of toys. The manager has just received the sales forecast for the coming year for the coming year for the two different products: small toys and big toys. HC Company went through different variations in sales volume and variable costs over the last couple of years. The forecast should be examined from a Cost-Volume-Profit (CVP) viewpoint. The information for 2019 is presented as:

	Small Toys	Big toys
Unit sales	80,000	120,000
Unit selling price	$36	$48
Variable manufacturing cost per unit	$12	$26
Variable selling cost per unit	$2	$4

For 2019, HC Company fixed factory overhead is $2,200,000 and fixed selling and admin expense are forecasted to be $800,000

1) Prepare the budgeted income statement for 2019 for HC company. Show data for each product and for whole company.

2) Assuming sales mix remain budgeted, calculate the break even in units for 2019. How many units of each product should be sold in order to break even?