Taylor, Inc. produces only two products, Acdom and Belnom. These account for (60 %) and (40 %)

Question:

Taylor, Inc. produces only two products, Acdom and Belnom. These account for $60 \%$ and $40 \%$ of the total sales dollars of Taylor, respectively. Variable costs (as a percentage of sales dollars) are $60 \%$ for Acdom and $85 \%$ for Belnom. Total fixed costs are $\$ 150,000$. There are no other costs.

Required:

(1) What is Taylor's breakeven point in sales dollars?

(2) Assuming that the total fixed costs of Taylor increase by $30 \%$, what amount of sales dollars would be necessary to generate an income of $\$ 9,000$ ?

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