Hewtex Electronics manufactures two products, tape recorders and electronic calculators, and sells them nationally to wholesalers and retailers. The Hewtex management is very pleased with the company's performance for the current fiscal year. Projected sales through December 31, 1998, suggest that 120,000 tape recorders and 190,000 electronic calculators will be sold this year. The projected earnings statement, which follows, shows that Hewtex will not meet its earnings goal of 9% of sales after taxes.

Required

(1) Assuming that the sales mix in the planning documents is achieved, how many tape recorder and electronic calculator units would Hewtex Electronics have to sell in 1998 to break even?

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Sales Flexible costs Materials Labor Other Committed costs Total costs Gross margin Facility-sustaining costs Net income before income taxes HEWTEX ELECTRONICS Projected Earnings Statement For the Year Ended December 31, 1998 120,000 UNITS 190,000 UNITS TAPE RECORDERS ELECTRONIC CALCULATORS TOTAL Total Amount Total Amount (000 (000 omitted) Per Unit (000 omitted) Per Unit omitted) $1,800 $15.00 $4,480 $28.00 $6,280 480 4.00 1,140 6.00 1,620 360 3.00 1,710 9.00 2,070 120 1.00 570 3.00 690 280 2.33 1,400 7.37 1,680 1,240 10.33 4,820 25.37 6,060 560 4.67 500 2.63 1,060 2,000 (940)