DAKOTA PRODUCTS INC.

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

2007 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.

Answer units

(b) Determine the unit sales volume required to earn a profit of $6,000.