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Comparative 2007 and 2008 income statements for Dakota Products Inc. follow:
DAKOTA PRODUCTS INC.
Comparative Income Statements
For Years Ending December 31, 2007 and 2008
Unit sales 5,000 8,000
Sales revenue $70,000 $112,000
Expenses (74,000) (92,000)
Profit (loss) $(4,000) $20,000
(a) Determine the break-even point in units.
(b) Determine the unit sales volume required to earn a profit of $6,000.
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