Information about two products is as follows:

Product E Product Z

Selling price per unit $40 $65

Variable cost per unit $15 $45

Contribution margin per unit $25 $20

The firm expects 80% of its sales (in units) to be Product E (a sales mix of 8:2). Fixed costs are expected to be $90,000.

Required:

Calculate the break-even in units.

Calculate the number of units Product E to be sold if the company is targeting a before-tax income of $120,000