XYZ, Inc. pays $105,000 in rent for its factory, and its factory manager receives annual compensation of $100,000. It sells the units produced at $10 a unit. If the raw material costs are $1.95 and the direct labor costs are $2.20 per unit.
a) what is its break-even point in units?
b) how many units does XYZ need to sell to make a profit of $65,000?