Hurricane Safe produces an LED rechargeable flashlight torch that it sells online through various websites. It has the following cost structure.

	Fixed	Variable	Total
Cost*	Cost	Cost
Advertising	$2.20	$2.70	$4.90
Distribution	1.70	1.25	2.95
Direct labor		4.50	4.50
Direct material		11.00	11.00
Manufacturing overhead	4.20	5.50	9.70
Selling	1.20	0.90	2.10
Total cost	$9.30	$25.85	$35.15

*Fixed cost at 100,000 units per year.

Required:

a. If the flashlight torch sells for $50, how many torches must Hurricane sell each year to break even?

b. Hurricane Safe had no inventory of torches at the beginning of the year but had 1,000 torches at the end of the year. Hurricane Safe uses variable costing to value ending inventories. What is Hurricane Safe's ending inventory value of torches?