Question 1: Jim sells steel clocks and steel stools. Fixed costs for his factory are 21,450. Jim has decided on a target mix of 25% clocks and 75% stools. Below is the cost information for the two products (assume Direct Labor is a variable cost):

Product	Clock	Stool
Selling Price	$30	$50
Direct Materials	8	15
Direct Labor	4	6

a) Using, the target sales mix, determine the number of units that Jim just sell of each item to breakeven for the month. (Round only your final answer for each item to the nearest whole number)

b) Using the target sales mix, determine the number of units of clocks and stools that Jim must sell to make a (pretax) target profit of 15% of sales revenue.

c) Using the target sales mix, determine the sales revenue required to earn (pretax) income equal to 15% of sales revenue.

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