The New England Catering Company specializes in preparing tasty main courses that are frozen and shipped to the finer restaurants in the Boston area. When a diner orders the item, the restaurant heats and serves it. The budget data for 2018 are:

PRODUCT	Chicken Cordon Bleu	Veal Marsala
Selling price to restaurants	$11	$15
Variable expenses	6	9
Contribution margin	$5	$6
Number of units	600,000	200,000

The items are prepared in the same kitchen, delivered in the same trucks, and so forth. Therefore, the fixed costs of $2,500,000 are unaffected by the specific products. Bostons tax rate is 35%.

Required: a) Compute the planned net income for 2018. b) Compute the break-even point in revenues, assuming that the planned sales mix is maintained.