Acct 206 Homework Name...... Amazon sells a large variety of pens and Special pencils. The Manager is thinking of expanding sales by employing more salespeople on a commission basis. To sell the special pencils. These Special pencils would have to be ordered from the manufacturer six weeks in advance and they could not be returned because of the unique lettering required. The Special pencils would cost $8 each with a minimum order of 75 special pencils. Any additional Special pencils would be ordered in increments of 75. Since the managers plan would not require any additional facilities, the only costs associated with the project would be the costs of the Special pencils and the costs of the sales commissions. The selling price of the Special pencils would be $13.50 each. The manager would pay the salespeople a commission of $1.50 for each Special pencil sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $1,200? 2. Assume that the manager places an initial order for 75 Special pencils. What is his breakeven point in unit sales and dollar sales? 3. How many Special pencils would the Manager need to sell to earn a target profit of $1,320?