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19. Last year, Legacy Company has reported the results shown in the below table in relation to the manufacture and the sale of one of its products, the product M70. The company is considering discontinuing the manufacture and the sale of the product M70. If the product M70 is not dropped the operating results shown below are expected to continue in the foreseeable future. The fixed manufacturing overhead includes the costs of production facilities and equipment that the product M70 shares with other products produced by Legacy Company. If this product is dropped, there will be no change in the fixed manufacturing costs of the company. Assuming that dropping the M70 product line will result in an increase of $120,000 in the contribution margin of other product lines, how many units of the product M70 will the company need to sell next year in order to be as well off as if this product has just been dropped, and the company has enjoyed the increase in the contribution margin from other products? Amount Item Number of Units Manufactured and Sold Unit Selling Price Variable Cost of Goods Sold Variable Distribution Costs Fixed Advertising Expense Salary of Product-Line Manager Fixed Manufacturing Overhead Net Operating Loss 7,000 units $145 per unit $525.000 $140,000 $300,000 $70,000 $150,000 ($170,000)

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