Jubail Corporation produces educational games for kids since the year 2008. A new educational game has come onto the market by another competitor company.

Jubail Corporation is keen to produce and sell the new game. The selling price will be $ 3 per game. Enough capacity exists in Jubail Corporations factory to produce 16,000 units of the new game each month. Variable costs to manufacture one unit of the new game would be $ 1.25, and the fixed costs of the new game is $ 35,000 per month.

Jubail Corporation estimated that the demand for the new game would exceed the 16,000 units that the corporation is able to produce. To produce additional quantities, a new space area should be rented and this will cost Jubail Corporation $ 1,000 extra fixed costs per month and the variable costs will also increase by $ 0.15 per unit.

The General Manager of Jubail Corporation has decided to rent the new space and produce additional quantities of the new game, but he asked you as a Senior Manager to determine the monthly Break-even quantities Jubail Corporation should sell to cover all fixed and variable costs of the new game.