Question 7 Z-Company sells three products. Income statement information for the three products for the most recent year is given below: Product 1 $20 Product 2 $29 Product 3 $15 Selling price per unit Costs: Variable costs $64,000 $87,000 $39,000 Advertising $24,400 $23,200 $19,800 Rent.... $15,000 $15,000 $15,000 Supervisor's salary $26,800 $20,300 $28,200 Property taxes $11,000 $12,000 $16,000 Units sold 8,000 5,000 13,000 The rent is allocated to the three products equally and the property taxes are allocated based on the square footage each product uses in the factory. Z-Company is considering eliminating Product 2. If Product 2 is eliminated, the space currently being used to produce Product 2 can be rented out for $5,800 per year. Calculate the number of units of Product 2 that would need to be sold next year in order for Z-Company to be economically indifferent between dropping and keeping Product 2.