Sonix Electronics is a dealer of industrial refrigerator. Its average selling price of an industrial refrigerator is $5,000, which it purchases from the manufacturer for $4,200. Each month, Sonix Electronics pays $52,800 in rent and other office expenditures and $75,200 for salespeople’s salaries. In addition to their salaries, salespeople are paid a commission of 4% of sale price on each refrigerator they sell. Sonix Electronics also spends $18,400 each month for local advertisements. Its tax rate is 30%.

Required

1. How many refrigerators must Sonix Electronics sell each month to break even?
2. Sonix Electronics has a target monthly net income of $63,000. What is its target monthly operating income?
How many refrigerators must be sold each month to reach the target monthly net income of $63,000?