Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics:

Sales price	$	355	per unit
Variable costs		140	per unit
Fixed costs		451,500	per month

Required:

a. What number must Derby sell per month to break even?

Break even sales in units

b. What number must Derby sell to make an operating profit of $279,500 for the month?

Number of units sold