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solve the three fields Yilan Company is considering adding a new product. The cost accountant has provided the following data. Expected variable cost of manufacturing
solve the three fields
Yilan 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 $ $93,000 43 per unit The administrative vice president has provided the following estimates. Expected sales commission Expected annual fixed administrative costs $ $51,000 4 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 $71, how many units must Yilan sell to break even? umber of units Yilan estimates that sales will probably be 12000 units. What sales price per unit will allow the company to break even? b. Sales price per unit Yilan has decided to advertise the product heavily and has set the sales price at $73. If sales are 12,000 units, how much can the company spend on advertising and still break even? c. cosStep by Step Solution
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