Exercise 3-7A (Algo) Cost-volume-profit relationship LO 3-2 Baird Corporation is a manufacturing company that makes small electric motors it sells for $50 per unit. The variable costs of production are $30 per motor, and annual fixed costs of production are $360,000. Required o. How many units of product must Baird make and sell to break even? b. How many units of product must Baird make and sell to earn a $60,000 profit? c. The marketing manager believes that sales would increase dramatically if the price were reduced to $45 per unit. How many units of product must Baird make and sell to earn a $78,000 profit. If the sales price is set at $45 per unit? units a Sales volume Sales volume c. Sales volume units units Exercise 3-8A (Algo) Target costing LO 3-2 The marketing manager of Solomon Corporation has determined that a market exists for a telephone with a sales price of $20 per unit. The production manager estimates the annual fixed costs of producing between 40,200 and 81,400 telephones would be $443,800. Required Assume that Solomon desires to earn a $131,000 profit from the phone sales. How much can Solomon afford to spend on variable cost per unit if production and sales equal 47.900 phones? Variable cost per unit Exercise 3-9A (Algo) Target costing LO 3-2 Zachary Enterprises produces a product with fixed costs of $40,200 and variable cost of $3.30 per unit. The company desires to earn a $28,000 profit and believes it can sell 11,000 units of the product. Required a. Based on this information, determine the target sales price. (Round your answer to 2 decimal places.) Target sales price per unit Exercise 3-10A (Static) Components of break-even graph LO 3-3 Refer the graph which shows the components of break-even. Required Match the numbers shown in the graph with the following items: Numbers a. Items Fixed cost line Total cost line Break-even point Area of profit Revenue line Area of loss 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