The Thai Corporation has sales subsidiries around the world.As a rule of the thumb,each new established subdiary should be able to reach its break even point during year 2.After 18 monthsof business activity in ,the Thai Corporation's Thai sales subsidiary generated a sales volume of 200,000 units.Its variable cost are $5 per unit and fixed cost at $ 750,000.

1.In year 2,at sales prices $17 per unit ,how many units does the subsidiary needs need to sell in order to break even?

2.Do you think the company will make a profit if last year sales area good indicator of future sales?