Stuart 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 $44 per unit The administrative vice president has provided the following estimates: $8 per unit Expected sales commission Expected annual fixed administrative costs. The manager has decided that any new product must at least break even in the first year. $90,000 Required Use the equation method and consider each requirement separately. a. Number of units b. Sales price c. Advertising cost $45,000 a. If the sales price is set at $67, how many units must Stuart sell to break even? b. Stuart estimates that sales will probably be 15,000 units. What sales price per unit will allow the company to break even? c. Stuart has decided to advertise the product heavily and has set the sales price at $70. If sales are 10,000 units, how much can the company spend on advertising and still break even? per unit

Stuart Company is considering adding a new product. The cost accountant has provided the following data: The administrative vice president has provided the following estimates: Expected sales commission Expected annual fixed administrative costs $45,000perunit 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 Stuart sell to break even? b. Stuart estimates that sales will probably be 15,000 units. What sales price per unit will allow the company to break even? c. Stuart has decided to advertise the product heavily and has set the sales price at $70, If sales are 10,000 units, how much can the company spend on advertising and still break even