Executives of the Carrot Watch, Inc. (which produces Apple Watch knock-offs) produced the latest watch which is now ready for distribution. Carrot Watch sells to a wholesaler who then sells to retailers and ultimately end consumers. The following cost information is needed to answer the questions below for Carrot Watch, Inc.:

Carrot Watch packaging (direct material and labor) $1.00/each Carrot Watch raw materials for production $5.00/each Software on watch $12.00/each Rent and Fixed Salaries $275,000 Selling price to distributor $48.00

Calculate the following: a. Break-even point in units b. Break-even point in dollars Now pretend that the Carrot Watch executives only want to introduce the new watch if it will generate a profit of $200,000 for them. Calculate how many watches must be sold in order to generate $200,000 profit. (HINT: you can use the same basic BEP formula, but watch the video to see where you include the $200,000 target profit).