$1.$ TenAlpina is adding a new product line, which will add some new revenues and costs. Based on Guilia$$s estimates, and assuming that the volumes for piton production and sales do not change, how many wall hammers would TenAlpina Tools have to sell in order the same annual gross margin $($in dollars$)$ as it would have if only piton were sold? That is$,$ at what demand level for hammers would Guilia be indifferent $($from a total profitability point of view$)$ as to whether or not to add the new product line? Hint: You need to identify the incremental $($relevant$)$ revenues and costs for the hammer, and then compute the break$-$even point only for hammers.

Table $1$

Volume

$50,400$

Revenue

$$529,200$

Materials

$$73,080$

Direct Labor

$$345,000$

Factory Overhead

Supplies

$$5,544$

Power

$$29,808$

Depreciation

$$14,355$

Occupancy

$$33,000$

Total Manufacturing costs

$$500,787$

Gross Margin

$$28,413$

$5\mathrm{.}4\%$