TexFab manufactures two products, GT450 and GT600 that have the following sales and cost information.

Round all dollar answers up, to the nearest whole number. Required: 1. What is the breakeven point in dollars if sales remain at the same sales mix reflected in the income statement presented above? 2. If the TexFab Company's sales mix becomes $50,000 of product GT450 and $50,000 of product GT600, what is the breakeven point in sales dollars? Prepare an income statementin the format given abovefor this scenario. 3. Why have the breakeven point and the amount of operating income (B) changed?

	GT450		GT600		Total
	Amount	%	Amount	%	Amount	%
Sales	$ 25,000	100	$ 75,000	100	$ 100,000	100.0
Variable costs	20,000	80	37,500	50	57,500	57.5
Contribution margin	$ 5,000	20	$ 37,500	50	$ 42,500	42.5
Fixed costs					20,000
Operating income					$ 22,500