Elliott Stabler Problem $(19$ points$)$

Elliott Stabler Company has developed a new product that will be marketed for the first time during the next fiscal year. The marketing department estimates that $37,000$ units will be sold at $$39$ per unit. The fixed expenses associated with this new product are budgeted at $490,000$ for the year. The variable expenses of the new product are $$23$ per unit.

part a$)$ How many units of the new product must Elliott sell during the fiscal year in order to break even on the product $(3$ points$)?$

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part b$)$ What is the profit Elliott would earn on the new product if $30,000$ units are sold $(6$ pts$)?$

$($Hint: create a contribution margin income statement$)$

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part c$)$ Refer back to the original data. The marketing department would like more manufacturing capacity to be devoted to the new product. What would be the net income for the new product if its unit sales could be expanded by $10\%$ without any increase in fixed expenses and without any changes in the unit selling price and unit variable expense $(10$ points$)?($Hint: make another contribution margin income statement here$)$

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