$ 4 2 1 5 Units Exercise 3-10A (Static) Components of break-even graph LO 3-3 Refer the graph which shows the components of break-even. Required Match the numbers shown in the graph with the following items: Items Numbers Fixed cost line Total cost line Break-even point Area of profit . b. C. d. Revenue line . f. Area of loss Walton 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 35 per unit 60,000 The administrative vice president has provided the following estimates Expected sales commission Expected annual fixed administrative costs 7 per unit 60,000 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 $72, how many units must Walton sell to break even? b. Walton estimates that sales will probably be 12,000 units. What sales price per unit will allow the company to break even? c. Walton has decided to advertise the product heavily and has set the sales price at $75. If sales are 13,000 units, how much can the company spend on advertising and still break even? a. Number of units b. Sales price per unit c. Advertising cost