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

The administrative vice president has provided the following estimates:

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.

• If the sales price is set at $67, how many units must Rooney sell to break even?
• Rooney estimates that sales will probably be 10,000 units. What sales price per unit will allow the company to break even?
• Rooney has decided to advertise the product heavily and has set the sales price at $72. If sales are 7,000 units, how much can the company spend on advertising and still break even?

Rooney Company is considering adding a new product. The cost accountant has provided the following data: Ixpected variable cost of manufacturing Expected annual fixed manufacturing costs $68,000perunit The administrative vice president has provided the following estimates: Expected sales corratssion Expected annual fixed administrative costs $52,000perunit 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 $67, how many units must Rooney sell to break even? b. Rooney estimates that sales will probably be 10,000 units. What sales price per unit will allow the company to break even? c. Rooney has decided to advertise the product heavily and has set the sales price at $72. If sales are 7,000 units, how much can the company spend on advertising and still break even

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