Owen Lars operates a business that sells enhanced condensers to the water farmers on

Tatooine.

He buys basic condensers from his supplier on Cloud City for $400 per condenser

and sells them for $800 each aVer he has modified them to perform in the

scorching heat of Tatooine.

He pays $20,000 per month to rent his producDon facility and $3,000 per month

for uDliDes.

The work on modifying the condensers is done by a team of droids. He incurs

monthly operaDng expenses of $4,500 per month to keep the droids funcDoning

properly.

1. How many condensers does Owen have to sell each year to break-even?

2. If Owen wanted to make $8,000 per month in profit, how many additional condensers would he have to sell each year, i.e. a number of units over and above the breakeven level of sales?