Nikiola Inc. manufactures two types of cellular phones, the Safety model and the Deluxe model, with the following characteristics:

	Safety	Deluxe
Selling Price Per Unit Variable Costs Per Unit	$50 $35	$80 $45

The total fixed costs for the company are $600,000 for the current year.

REQUIRED:

1. Assume the company sells 50,000 Safety phones and 25,000 Deluxe phones in the current year. What will the company operating income be?

2. Assume that the product mix of two Safety phones sold for every one Deluxe phone sold holds true at all volume levels. Calculate the break-even point in units.

3. If the sales mix changed to three Deluxe phones for every one Safety phone sold, what would the new break-even point be in units?