Assume that you failed in your venture to manufacture and sell Godzilla dolls. You still believe that the concept is good. So you have retooled your factory to manufacture “Johnny Football” dolls (action figures) that you plan to sell for $19 with $1 variable cost per unit. Your fixed costs total $53,000 per year.
A. Calculate the number of units you must sell to break even.
B. Calculate the number of units you must sell to show $50,000 profit.