Luke Corporation produces a variety of products, each within their own division. Last year, the managers at Luke developed and began marketing a new chewing gum, Bubbs, to sell in vending machines. The product, which sells for $5.50 per case, has not had the market success that managers expected, and the company is considering dropping Bubbs.

The product-line income statement for the last month follows:

Revenue				$	1,415,975
Costs
Production costs				$	(1,285,451)
Product-line margin				$	130,524
Allowance for tax (@20%)					(26,104.80)
Product-line profit (loss)				$	104,419.20

Roy O. Andre, the product manager for Bubbs, is concerned about whether the product will be dropped by the company and has employed you as a financial consultant to help with some analysis. In addition to the information given, Mr. Andre provides you with the following data on production costs for Bubbs for the past 12 months:

Month	Cases	Production Costs
1	220,000	$1,155,250
2	219,200	1,174,265
3	216,900	1,172,918
4	233,000	1,193,523
5	238,100	1,195,827
6	241,000	1,216,673
7	222,200	1,195,699
8	249,200	1,215,210
9	242,800	1,233,226
10	254,600	1,250,377
11	249,500	1,249,760
12	256,300	1,285,451

Assume that the relevant range of production is between 150,000 and 350,000 cases.

3.Suppose Luke has a requirement that all products must earn an after-tax profit equal to 7 percent of total sales per month or they will be dropped. How many cases of Bubbs does Mr. Andre need to sell in a month to avoid seeing Bubbs dropped? (round the number of cases to the nearest whole number)

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