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9* The Thai Corporation has sales subsidiaries around the world. As a rule of thumb, each new established subsidiary should be able to reach its

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9* The Thai Corporation has sales subsidiaries around the world. As a rule of thumb, each new established subsidiary should be able to reach its break-even point during year 2. After 18 months of business activity in Thailand, The Thai Corporation's Thai sales subsidiary generated a sales volume of 200,000 units. Its variable costs are $5 per unit and xed costs at this level equal $750,000. a. In year 2, at a sales price of $17 per unit, how many units does the subsidiary need to sell in order to break even? b. Do you think the company will make a prot if last year's sales are a good indicator of future sales

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