Portraits-R-Us is a photo framing company. They are considering the production and sale of a specialized digital frame that can modify photo appearances using artificial intelligence. The planned selling price and estimated costs are provided below.

Sales price per unit: $299

Variable costs per unit: $175

Total fixed costs: $680,000

Required:

1. Calculate the break-even point in unit sales. Note that only whole units can be sold, so round appropriately to ensure at least breakeven sales.

1. Calculate the break-even point in sales dollars.

1. Calculate the number of units that the company would need to sell to generate pre-tax operating income of $200,000.

1. Company management is concerned that their estimates may not be conservative enough, so they decide to also plan around higher cost estimates. Recalculate the breakeven point in units and in sales dollars assuming the selling price remains $299 per unit, but variable costs per unit and total fixed costs are each 10% higher than planned.

Show all calculations. Units should not be shown as dollars or percentages, and should be rounded to whole numbers (because the company cant sell partial frames). Dollars should be shown with two decimal places.