Aquaspore Limited sells advanced technology wetsuits for a price of $2400 each. The company has a profit target this year of $143,000 and is considering increasing sales commissions in an effort to increase sales. The contribution margin ratio of the wetsuits is 25% and the company's fixed costs for this year are expected to be $320,000.

Given that Aquaspore has a very optimistic profit target, would it be useful for management to know the breakeven point? Explain you answer.

Given that Aquaspore has a very optimistic profit target, would it be useful for management to know the breakeven point? Explain you answer.