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Benson Company is considering adding a new product. The cost accountant has provided the following data: Expected variable cost of manufacturing Expected annual fixed manufacturing

Benson Company is considering adding a new product. The cost accountant has provided the following data:
Expected variable cost of manufacturing
Expected annual fixed manufacturing costs
$56,000 per unit
The administrative vice president has provided the following estimates:
Expected sales commission
Expected annual fixed administrative costs
$40,000 per unit
The manager has decided that any new product must at least break even in the first year.
Required
Use the equation method and consider each requirement separately.
a. If the sales price is set at $69, how many units must Benson sell to break even?
b. Benson estimates that sales will probably be 8,000 units. What sales price per unit will allow the company to break even?
c. Benson has decided to advertise the product heavily and has set the sales price at $70. If sales are 9,000 units, how much can the company spend on advertising and still break even?
\table[[a. Number of units,,],[b. Sales price,,per unit],[c. Advertising cost,-,]]
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