The Richardson C ompany specializes in preparing tasty main courses that are frozen and shipped to finer restaurants in the Miami 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 $18 $20

Variable expenses 10 14

Contribution margin $8 $6

Number of units 300,000 400,000

The items are prepared in the same kitchens, delivered in the same trucks, and so forth. Therefore, the fixed costs of $1,500,000 are unaffected by the specific products.

a)Compute the expected operating income for 2018.

b) Compute the break-even point in sales dollars, assuming that the planned sales mix is maintained.