Breed Products has performed extensive studies on its costs and production and estimates the following annual costs based on 158,000 units (produced and sold):

	Total Annual Costs (158,000 units)
Direct material	$	291,000
Direct labor		269,000
Manufacturing overhead		221,000
Selling, general, and administrative		139,000
Total	$	920,000

Required:

a. Compute Breeds dollar sales that will yield a projected 23 percent profit on sales, assuming variable costs per unit are 51 percent of the selling price per unit and fixed costs are $535,600.

b. Management believes that a selling price of $7.50 per unit is reasonable given current market conditions. How many units must Breed sell to generate the revenues (dollar sales) determined in requirement (b)? (Round your final answer to nearest whole unit.)