Gay and Joy developed a neat Bento box for children. The shape of the containers encourages healthy eating, and it is very popular. They have been paying another company to manufacture the boxes for them but are interested in manufacturing the boxes themselves. They’ve developed the following cost estimates: Sales (100,000 units) $ 1,000,000
Costs: Fixed Variable
Raw Materials $ 0 $ 300,000
Direct Labor 0 200,000
Factory Costs 100,000 150,000
Selling and Administrative
Costs 110,000 50,000
Total Costs $ 210,000 $ 700,000
Operating Income $ 90,000
1. How many units will Gay and Joy need to sell to breakeven?

Special order carson manufacturing, inc., sells a single product for $36 per unit. at an operating level of 8,000 units, variable costs are $18 per unit and fixed costs $10 per unit. carson has been offered a price of $20 per unit on a special order of 2,000 units by big mart discount stores, which would use its own brand name on the item. if carson accepts the order, material cost will be $3 less per unit than for regular production. however, special stamping equipment costing $4,000 would be needed to process the order; the equipment would then be discarded. assuming that volume remains within the relevant range, prepare an analysis of differential revenue and costs to determine whether carson should accept the special order. use a negative sign with answer to only indicate an income loss from special order; otherwise do not use negative signs with your answers.