E and E, Inc. produces a product that has a variable cost of $3.00 per unit. The company's fixed costs are $30,000. The product is sold for $5.00 per unit and the company desires to earn a target profit of $20,000.

Requirements:

1. What is the quantity of sales will be necessary to earn the desired profit?

2. What is the amount of sales that will be necessary to earn the desired profit?