1. Sally sells cloaks. Each cloak sells for $7,000 and has $50.00 in VC. FC total $19,000. How many cloaks does Sally need to sell to reach a target before-tax net income of $120,000?

2. Long & Strong, Inc. sells customized plastic waste bins for $20 each. Each bin requires DM of $5.00, DL of $2.00, and VMOH of $5.00. Sales salaries are $60,000. Sales commissions are $1.00 per unit sold. Other monthly salaries total $150,000, and rent is $40,000 per month. The lease agreement on the manufacturing equipment specifies L&S must pay $2.00 per unit manufactured. The flat tax rate is 30%. How many units does L&S need to produce and sell to achieve a target after-tax net income of $70,000?