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Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics: Sales price $ 215 per unit

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

Sales price $ 215 per unit
Variable costs 110 per unit
Fixed costs 210,000 per month

Required:

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

b. What number must Derby sell to make an operating profit of $136,500 for the month?

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