The Cal Company produces pocket size calculators that are sold for $10 per unit.

The Cal Company produces pocket size calculators that are sold for $10 per unit. The costs associated with each unit are as follows: Direct material = $3.00, Direct labor = $ .25, Variable overhead = $2.00, and Variable selling and administrative cost = $ .75. Total fixed costs are $100,000 for manufacturing and $20,000 for the selling and administrative functions. 

In a recent meeting, the board of directors asked the following questions. How many calculators do we need to produce and sell to accomplish each of the following requirements? 1. Break-even. 2. Earn net income before taxes of $40,000.  

 Then express in terms of $$.

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