1. Bic is starting a new division that will be releasing a new pen that will be sold for $2.00 per unit. Below is the information about this new undertaking:

Selling Price: $2.00

Operating Expenses: $60,000

Lease $15,000

Depreciation $5,000

Executive Salaries $30,000

Property Taxes $10,000

Costs of goods sold = $.90 per unit

Raw Materials $.20

Labor $.30

Sales Commissions $.40

How many pens will Bic need to make just to break even?

2. Bic finds that she is drawing 25% less than her break-even point. How do you suggest that she make up the difference. I am looking for data-driven ideas to specifically answer this question to actually quantify how she makes up the 25%.