Mike's Ice Cream Company produces and sells ice cream in three sizes: quart, halfgallon, and gallon. Relevant information for each of the sizes is as follows

Mike anticipates sales of $\$ 500,000$ and fixed costs of $\$ 120,000$ in 2000 .
Required: 1. Determine the break-even sales volume in dollars and units for 2000 .
2. Determine Mike's 2000 projected income.
3. Assume that Mike's sales mix changes to 10 percent quarts, 40 percent halfgallons, and 50 percent gallons. Determine Mike's break-even sales volume in dollars and units.

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Quart Half-Gallon Gallon Average sales price.. $1.00 $1.85 $3.60 Less variable cost. 0.80 1.40 2.40 Unit contribution margin. $0.20 $0.45 $1.20 Sales mix (% of sales). 15% 60% 25%