Tanalpina Tools: Product Line Expansion Case Questions 1. Giulia is considering adding a new product line (wall hammers), which will also add some new costs. Adding the new product line does not have any impact on the sales volume and price of pitons. Giulia wants to know the minimum number of wall hammers she would need to sell to maintain the current gross margin level for the company (i.e., gross margin from the sales of Pitons only). Before adding the wall hammers, pitons were the only product the company manufactured. The estimated financial result for selling 4,200 pitons per month is shown below (Based on Exhibit 3 in the case). Compute the minimum number of wall hammers Giulia wants to know (i.e., incremental revenue from wall hammers = incremental costs from wall hammers). 2. In question 1, you computed the number of hammers to sell to find a point of indifference to decide whether to add the hammers. Now, using Giulia's estimates and assumptions for piton and hammer production, determine the effect of adding the new wall hammer product line on the company's annual gross margin (in dollars and \%). Prepare an annual income statement at the company level, assuming that Tenalpina sells both pitons and wall hammers