Rooney 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

$$68,000$ per unit

The administrative vice president has provided the following estimates:

Expected sales commission

Expected annual fixed administrative costs

$$52,000$ per unit

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 $$67,$ how many units must Rooney sell to break even?

b$.$ Rooney estimates that sales will probably be $10,000$ units. What sales price per unit will allow the company to break even?

c$.$ Rooney has decided to advertise the product heavily and has set the sales price at $$72.$ If sales are $7,000$ units, how much can the company spend on advertising and still break even?

$\backslash$table$[[$a$.$ Number of units,$],[$b$.$ Sales price,per uhit$],[$c$.$ Advertising cost,$]]$