Wings Corp. produces and sells two products. During the most recent month, Howe's sales were $700,000, and its variable expenses were $400,000. Lindsay's sales were $400,000, and its variable expenses were $150,000. The company's fixed expenses were $350,000.

Required:

1. Prepare a contribution format income statement for Wings Corp.
2. Determine the overall break-even point for Wings Corp. Show your work!
3. If the sales mix shifts toward Lindsay with no change in total sales, what will happen to the break-even point for the company? Explain.