The Nicto Imports Shop sells steins from all parts of the world. The owner of the shop, Martha Nicto, is thinking of expanding her operations by hiring college students, on a commission basis, to sell steins at the local college. The steins will bear the school emblem. These steins must be ordered from the manufacturer three months in advance, and because of the unique emblem of each college, they cannot be returned. The steins would cost Nicto $20.4 each with a minimum order of 380 steins. Any additional steins would have to be ordered in increments of 50. Because Nictos plan would not require any additional facilities, the only costs associated with the project would be the cost of the steins and the cost of sales commissions. The selling price of the steins would be $34 each. Nicto would pay the students a commission of $8.5 for each stein sold.

Required:

1.

To make the project worthwhile in terms of his own time, Nicto would require a $3,876 profit for the first six months of the venture. What level of sales in units and dollars would be required to attain this target net operating income?

Sales level in units		steins
Sales level in dollars

2.

Assume that the venture is undertaken and an order is placed for 380 steins. What would be Nictos break-even point in units and in sales dollars? (Round your intermediate calculations and final answers to whole number.)

Break even point in units		steins
Break even point in sales dollars