DeHan Company, a sporting goods manufacturer, sells binoculars for $140 per unit. The variable cost is $100 per unit, while the fixed costs are $1,200,000.

a. Compute:

1.The anticipated break-even sales (units) for binoculars.

2.The sales (units) for binoculars required to realize target operating income of $400,000.

b. Construct a cost-volume-profit chart for the anticipated break-even sales for binoculars.