Question 2 i need help pls Neptune Company produces toys and...

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Accounting

Question 2 i need help pls
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Neptune Company produces toys and other items for use in beach and resort areas. A small, inflatable toy has come onto the market that the company is anxious to produce and sell. The new toy will sell for $3 per unit. Enough capacity exists in the company's plant to produce 16,000 units of the toy each month. Variable expenses to manufacture and sell one unit would be $1.25, and fixed expenses associated with the toy would total $35,000 per month. The company's Marketing Department predicts that demand for the new toy will exceed the 16,000 units that the company is able to produce. Additional manufacturing space can be rented from another company at a fixed expense of $1,000 per month. Variable expenses in the rented facility would total $1.40 per unit, due to somewhat less efficient operations than in the main plant Required: 1. Compute the monthly break-even point for the new toy in units and in total dollar sales. (Do not round intermediate calculations.) 2. How many units must be sold each month to make a monthly operating income of $12,000 ? (Do not round intermediate calculations.) Answer is complete but not entirely correct

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