(TCO 6) T-Tunes, Inc. is considering the introduction of a new music player with the following price and cost characteristics:

Sales price per unit:$120

Variable cost per unit: $60

Annual fixed costs:$150,000

(a) How many units must T-Tunes sell to break even?

(b) How many units must T-Tunes sell to make an operating profit of $240,000 for the year?

(c) What will the operating profit be, assuming that the projected sales for the year are 8,000 units?

Consider requirements (b) and(c) independent of each other.