Water World sells three products: ski vests, slalom skis, and ski ropes. Information related to each product line is provided below: Ski Vests Slalom Skis Ski Ropes Unit selling price $ 120 $ 300 $ 50 Unit variable cost 60 210 10 Sales mix percentage 20 % 70 % 10 % The company's annual fixed costs are approximately $741,000.
a. Compute total annual sales that the company must generate to break even. (Omit the "tiny_mce_markerquot; sign in your response.) Total annual sales $
b. Compute total annual sales that the company must generate to earn operating income of $234,000.