1. ABC makes yoyo's and plans to sell 162,000 units next year to its retail customers at an average price of $5.5 per unit. Fixed operating costs are expected to be $139,000 and variable operating costs per unit are projected to be $2.46. ABC will also have to make enough to cover the anticipated debt financing costs of $5,000. Given their cost projections, how many yoyo's does ABC have to sell to breakeven on its net income? Show your answer to the nearest yoyo.
2. XYZ plans to sell 1,000,000 units next year at $344 per unit. Fixed operating costs are expected to be $12,591,000 and variable operating costs are projected to be $172 per unit. Given their cost projections, what is XYZ’soperating breakeven level of sales in dollars? That is, what is the breakeven dollar amount of revenue?