Paddleboard Incorporated builds three products: River, Lake, and Ocean. Information for these three products is shown below:

	River	Lake	Ocean	Total
Selling price per unit	$310	$260	$270
Variable cost per unit	$175	$150	$125
Expected unit sales (annual)	14,000	2,000	4,000	20,000
Sales mix	70%	10%	20%	100%

Total annual fixed costs are $760,000. Assume the sales mix remains the same at all levels of sales.

(1) a. How many products in total must be sold to break even? b. How many units of each product must be sold to break even? (2) a. How many products in total must be sold to earn an annual profit of $1,280,000?

b. How many units of each product must be sold to earn an annual profit of $1,280,000?

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