Problem $3-22$A $($Algo$)$ Analyzing sales price and fixed cost using the equation method LO $3-1,3-2,3-5$

Benson Company is considering adding a new product. The cost accountant has provided the following data:

Expected variable cost of manufacturing

$$48$ per unit

Expected annual fixed manufacturing costs

$$56,000$

The administrative vice president has provided the following estimates:

Expected sales commission

Expected annual fixed administrative costs

$$5$ per unit

$$40,000$

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 $$69,$ how many units must Benson sell to break even?

b$.$ Benson estimates that sales will probably be $8,000$ units. What sales price per unit will allow the company to break even?

c$.$ Benson has decided to advertise the product heavily and has set the sales price at $$70.$ If sales are $9,000$ units, how much can the company spend on advertising and still break even?

$\backslash$table$[[$a$.$ Number of units,,$],[$b$.$ Sales price,,per unit$],[$c$.$ Advertising cost,,$]]$