Exercise 3-14A (Algo) Conducting sensitivity analysis using the equation method LO 3-5 Thornton Company produces a product that has a variable cost of $28 per unit and a sales price of $60 per unit. The company's annual fixed costs total $740,000. It had net income of $300,000 in the previous year. In an effort to increase the company's market share, management is considering lowering the selling price to $54 per unit. Required a. If Thornton desires to maintain net income of $300,000, how many additional units must it sell to justify the price decline? b. Assume that in addition to lowering its selling price to $54, Thornton also desires to increase its net income by $78,000. Determine the number of units the company must sell to earn the desired income. Complete this question by entering your answers in the tabs below. Required A Required B If Thornton desires to maintain net income of $300,000, how many additional units must it sell to justify the price decline? Additional units required units Required A Required B > Thornton Company produces a product that has a variable cost of $28 per unit and a sales price of $60 per unit. The company's annual fixed costs total $740,000. It had net income of $300,000 in the previous year. In an effort to increase the company's market share, management is considering lowering the selling price to $54 per unit. Required a. If Thornton desires to maintain net income of $300,000, how many additional units must it sell to justify the price decline? b. Assume that in addition to lowering its selling price to $54, Thornton also desires to increase its net income by $78,000. Determine the number of units the company must sell to earn the desired income. Complete this question by entering your answers in the tabs below. Required A Required B Assume that in addition to lowering its selling price to $54, Thornton also desires to increase its net income by $78,000. Determine the number of units the company must sell to earn the desired income. Number of units sold