Peak Performance Gear manufactures basic and advanced hiking boots. The basic boot is sold at $60 per pair, and the advanced boot is sold at $110 per pair. The variable cost of making the basic boot is $40 per pair. It costs an extra $25 to make the advanced boot. It takes 20 labor hours to produce 100 pairs of basic boots and 30 labor hours to produce 100 pairs of advanced boots. There are 3,500 hours of labor time available for production each week. The maximum weekly sales for the basic and advanced boots are 500 and 300 pairs, respectively. Fixed production costs total $400,000 per year. All selling costs are fixed.

Required: (a) Calculate the optimal production level in number of pairs for each product. (b) Prepare an income statement for the company based on the optimal production level. (c) Determine the break-even point in pairs for each type of boot.