You have recently been hired by an innovative start-up company, and your first task is to analyze the profitability of a new product line. Review the cost-volume-profit graph analysis (of the new product line) and answer the following questions about the new product line.

1. How many units of the product need to be sold to Break Even? units
2. A similar product line has current sales of 700 units. If we sell 700 units of this new product, will we be operating at a profit or a loss?

$1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200