1. Given the financial statements below for Dragonfly Enterprises, what is the external financing need for a pro forma increase in sales of 23% if the firm is operating at 92% capacity? Enter your answer as the nearest whole (e.g., 123), but do not include the $ sign.
2. Miller Tools is considering a new project that requires an initial investment of $81,300 for fixed assets, which will be depreciated straight-line to zero over the project's 4-year life. The project is expected to have fixed costs of $37,600 a year, and a contribution margin of $18.40. The tax rate is 34% and the discount rate is 10.5%. What is the financial breakeven point?
4,217 units
5,215 units
6,112 units
3,610 units
2,483 units