A company manufactures and sells widgets. The following information is available:

Each widget sells for $200.

The variable cost per widget is $75.

Total fixed costs per month are $375,000.

The company desires a target profit of $100,000 per month.

a.How many widgets does the company need to sell each month in order to achieve their monthly target profit of $100,000?

b.How much in sales revenue does the company need to generate each month in order to achieve their monthly target profit of $100,000?