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.
To make a target profit of? $2,000, Daisy’s monthly sales revenue needs to be _______

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.

Fixed cost= $2,520

Unitary cost= 20 + 2 + 4 + 6= $32

Contribution margin= $28

Break-even point= (fixed costs + profit)/ contribution margin

Break-even point= (2520 + 2000)/28= 162 units