Cahill 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 $57 per unit The administrative vice president has provided the following estimates: $3 per unit $216,000 Expected sales commission Expected annual fixed administrative costs The manager has decided that any new product must at least break even in the first year. $104,000 Required Use the equation method and consider each requirement separately. a. If the sales price is set at $110, how many units must Cahill sell to break even? b. Cahill estimates that sales will probably be 8,000 units. What sales price per unit will allow the company to break even? c. Cahill has decided to advertise the product heavily and has set the sales price at $115. If sales are 7,200 units, how much can the company spend on advertising and still break even?

Cahill Company is considering adding a new product. The cost accountant has provided the following data: The administrative vice president has provided the following estimates: The manager has decided that any new product must ot 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 $110, how many units must Cahill sell to break even? b. Cahill estimates that sales will probably be 8,000 units. What sales price per unit will allow the company to break even? c. Cohill has decided to advertise the product heavily and has set the sales price at \$115. If sales are 7,200 units, how much can the company spend on advertising and still break even