Mary Williams owner of Williams Products is evaluating whether to introduce a ne

Mary
Williams owner of Williams Products is evaluating whether to introduce a new
product line. After thinking through the
production process and the costs of raw materials and new equipment. Williams
estimates the variable costs of each unit produced and sold at $6 and the fixed
costs per year at $70000.a.
If the selling price is set at $18 each how many units must be produced
and sold for Williams to break even? Use
an algebraic approach to get your answer.b.
Williams forecasts sales of 12000 units for the first year if the
selling price is set at $16.00 each.
What would be the total contribution to profits from this new product
during the first year?c.
If the selling price is set at $12.00 Williams forecasts that
first-year sales would increase to 19000 units. Which pricing strategy ($16.00 or $12.00)
would result in the greater total contribution to profits?