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Exercise 3-10A (Static) Components of break-even graph LO 3-3 Refer the graphi which shows the components of break-even. Required Match the numbers shown in the

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Exercise 3-10A (Static) Components of break-even graph LO 3-3 Refer the graphi which shows the components of break-even. Required Match the numbers shown in the graph with the following items: Numbers a b. Items Fixed cost line Total cost line Break-even point Area of profit Revenue line Area of loss d. Units Exercise 3-11A (Algo) Margin of safety LO 3-4 Solomon Company makes a product that sells for $34 per unit. The company pays $15 per unit for the variable costs of the product and incurs annual fixed costs of $163,400. Solomon expects to sell 21,200 units of product. Required Determine Solomon's margin of safety expressed as a percentage. (Round your answer to 2 decimal places. (.e., 0.2345 should be entered as 23.45)) Margin of safety 48.62 Thornton 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 48 per unit $ 65,000 The administrative vice president has provided the following estimates: Expected sales commission Expected annual fixed administrative costs 6 per unit $ 55,000 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 $74, how many units must Thornton sell to break even? b. Thornton estimates that sales will probably be 12,000 units. What sales price per unit will allow the company to break even? c. Thornton has decided to advertise the product heavily and has set the sales price at $79. If sales are 9,000 units, how much can the company spend on advertising and still break even? a Number of units b. Sales price c. Advertising cost per unit

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