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The top management team of Western Chipsets examined the firms operations through the first 11...

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Accounting

The top management team of Western Chipsets examined the firms operations through the first 11 months of 2003 on December 3. The actual results and the estimates for December 2003 are below. The December estimates were prepared based on the number of firm orders received by the firm for delivery in the month of December. No further orders were anticipated. The direct materials and direct labor costs were prepared based on the actual average unit
DM and DL usage through November ($4.47 and $1.21, respectively). These were expected to be essentially the same in December. Finally, overhead and G&A amounts for December were prepared using all of the payments scheduled to be made for equipment leases, facility leases, taxes, and other G&A amounts. Western Chipsets could not postpone paying for any of these items. All overhead and G&A costs are fixed they do not go up or down with the number of units, at least not in the short run. Question: Using the information above and the two charts in the photograph, How many units must be produced and inventoried for Western Chipsets to exactly meet the $100,000,000 option trigger?
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