Kellys jewelry sells silver bracelets and diamond necklaces. It reported the following information for the fiscal year ending January 2013.

	Total
Sales	$1,250,000
Variable Expenses	550,000
Contribution Margin	700,000
Fixed Expenses	500,000
Net Operating Income	$200,000

Production line information:

- Sales mix: 55% silver bracelets, 45% diamond necklaces

- The average diamond necklace sells for $250 and has a variable cost of $100

Kellys jewelry believes that its cost structure, selling prices, and sales mix are stable and will not change for the next several years.

1. Compute the sales dollars that diamond necklaces will generate when Kellys jewelry breaks even.

2. Compute the contribution margin ratio of silver bracelets

Silver bracelets are becoming a more popular. As a result, Kellys jewelry believes its sale mix will change so that silver bracelets account for 80% of its sales.

3. Compute Kellys jewelrys breakeven point in sales dollars as a result of this new sales mix.