Daisy Childs has decided to start an? e-tail business which will sell doggie treat dispensers. Daisy will sell each unit for? $60, and will purchase the units from a foreign supplier for? $20 each. Import duties are? 10% the amount paid to the foreign supplier and? freight-in is expected to be? $4 per unit. Packaging and shipping the units to customers will cost another? $6 per unit. Daisy has contracted out the web page design and maintenance for? $2,520 per month. Daisy expects no other costs as long as she? doesn’t sell more than? 1,000 units per month.
1) ?What is Daisy’s monthly sales revenue needed for her business to breakeven?
2) What is the number of units must Daisy sell to make a target profit of $20,000?