Thompson Company is considering the development of two products: no. 65 or no. 66. Manufacturing cost information follows. No. 65 No. 66

Annual fixed costs $222,000 $340,000

Variable cost per unit 30 25

Regardless of which product is introduced, the anticipated selling price will be $50 and the company will pay a 10% sales commission on gross dollar sales. Thompson will not carry an inventory of these items.

1) Difference between breakeven volume (stated as revenue deollars) for the two products = $

2) Difference between profits of the two products at a sales level of 25,000 units = $

3) At what volume level (expressed as number of units), both products will generate the same level of profit? The volume level =

4) Margin of safety (expressed as a %) for product # 65 when the company is selling 16,000 units =