Cambridge, Inc., is considering the introduction of a new calculator with the following price and cost characteristics:
Sales price . . . . . . . . . . . . . $ 18 each
Variable costs . . . . . . . . . . . 10 each
Fixed costs . . . . . . . . . . . . . 20,000 per month

Required
a. What number must Cambridge sell per month to break even?
b. What number must Cambridge sell to make an operating profit of $16,000 for the month?