Malibu Corporation sells its Sunrise surfboard for $1,000 each. Each Sunrise board has a variable cost of $250 per unit. The company's monthly fixed expenses are $900,00.

1. What is the company's break-even point in units?

2. What is the company's break-even point in sales dollars?

3. If the company has a target profit of $600,000, how many Sunrise boards must they sell?

Malibu Corporation has decided that it will expand its product offerings to include Sunset surfboard. They believe that it can sell each Sunset board for $1,500 and estimates that it will cost $500 to make each board. The company expects to incur an additional $500,00 in fixed expenses. Initial sales estimates indicate that Malibu customers will be buy 1 sunset board for every 4 Sunrise boards.

4. What is the company's break-even point in units for Sunrise boards and Sunset boards? In other words, how many Sunrise boards and Sunset boards must be sold to break-even?

5. What is the company's break-even point in sales dollars?

6. If the company has a target profit of $1,000,000, how many Sunrise boards and Sunset boards must they sell?