calculate units

Oriole Toys management is considering eliminating product A which has been showing a loss for several years. The company's annual income statement, is as follows: B Sales Variable expenses Contribution margin Advertising expense Depreciation expense Corporate expenses Total fixed expenses Operating income A $2,295.000 1.696,000 $599,000 $517,000 17,400 93,500 $627.900 $128.900) $1,406,000 601,500 $804,500 $427,000 10,400 81.900 $519,300 $285,200 $1,812.000 1,089,300 $722.700 $521,000 22,000 106,700 $649,700 $73,000 Total $5,513,000 3,386,800 $2.126,200 $1,465,000 49.800 282,100 $1,796,900 $329,300 Advertising expense - Specific to each product. Depreciation expense-Specific to each product; no other use available, no resale value. Corporate expenses - Allocated based on number of employees. R Sales Reve 2295000 $ 1406000 Variable expenses 1696000 i 601500 1 Contribution margin 599000 804500 Less Direct fixed expenses Advertising 517000 i 427000 i Depreciation 17400 i 10400 $ Segment margin $ 64600 $ 367100 Common fixed expenses Operating profit A B Total 2295000 1406000 1812000 s 5513000 1696000 601500 1089300 3386900 599000 304500 722700 2126200 517000 427000 521000 1465000 i 10400 22000 i 17400 49000 179700 367100 611400 64600 282100 i s 329300 Management is considering making a new product using product As equipment. If the new product's selling price per unit were $12, its variable costs were $7 and its advertising costs were the same as for product A how many units of the new product would the company have to sell to make the switch from product A to the new product worthwhile? Units