Robert is thinking of entering the chewing gum market in the GTA Area. He is going to call his company Chewy Chewing Gum. He realizes that the chewing gum industry is dominated by only three companies that keep the competition out by spending a great deal on advertising. Nonetheless, Robert is tempted by the high profit margin. He plans to sell his gum for a dollar per pack. Variable costs are $0.20 per pack. His fixed costs are estimated at $100,000. He currently has the capacity to make and sell 200,000 packs a year. In order to justify spending his time on this venture, rather than sitting at home, Robert needs to have an operating income of $15,000.

Instructions a) What is Roberts break even in units? b) How many packs must Robert sell to achieve his target income of $15,000? c) Is Roberts plan feasible?