Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics:
Sales price. . . . . . . . . . . . $ 15 per unit
Variable costs. . . . . . . . . . 3 per unit
Fixed costs. . . . . . . . . . . . 42,000 per month
Required
a. What number must Warner sell per month to break even?
b. What number must Warner sell per month to make an operating profit of $30,000?