D&R Corporation has annual revenues of $283,000, an average contribution margin ratio of 32%, and fixed...
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D&R Corporation has annual revenues of $283,000, an average contribution margin ratio of 32%, and fixed expenses of $100,700 Required: a. Management is considering adding a new product to the company's product line. The new item will have $8.60 of variable costs per unit. Calculate the selling price that will be required if this product is not to affect the average contribution margin ratio. b. If the new product adds an additional $31,600 to D&R's fixed expenses, how many units of the new product must be sold at the price calculated in part a to break even on the new product? c. If 18,900 units of the new product could be sold at a price of $14.80 per unit, and the company's other business did not change, calculate D&R's total operating income and average contribution margin ratio. Complete this question by entering your answers in the tabs below. Required A Required B Answer is complete but not entirely correct. Required C ***on nor unit and the company's other business did not 3 B Return to question I b. If the new product adds an additional $31,600 to D&R's fixed expenses, how many units of the new product must be sold at the - price calculated in part a to break even on the new product? c. If 18,900 units of the new product could be sold at a price of $14.80 per unit, and the company's other business did not change. calculate D&R's total operating income and average contribution margin ratio. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Total operating income Average contribution margin ratio: Required A Required B Required C If 18,900 units of the new product could be sold at a price of $14.80 per unit, and the company's other business did not change, calculate D&R's total operating income and average contribution margin ratio. Note: Round your intermediate calculations to 2 decimal places. Round "Average contribution margin ratio" to 2 decimal places. $ (484,000) (107.23) % < Required B www.g Required C Show less a D&R Corporation has annual revenues of $283,000, an average contribution margin ratio of 32%, and fixed expenses of $100,700 Required: a. Management is considering adding a new product to the company's product line. The new item will have $8.60 of variable costs per unit. Calculate the selling price that will be required if this product is not to affect the average contribution margin ratio. b. If the new product adds an additional $31,600 to D&R's fixed expenses, how many units of the new product must be sold at the price calculated in part a to break even on the new product? c. If 18,900 units of the new product could be sold at a price of $14.80 per unit, and the company's other business did not change, calculate D&R's total operating income and average contribution margin ratio. Complete this question by entering your answers in the tabs below. Required A Required B Answer is complete but not entirely correct. Required C ***on nor unit and the company's other business did not 3 B Return to question I b. If the new product adds an additional $31,600 to D&R's fixed expenses, how many units of the new product must be sold at the - price calculated in part a to break even on the new product? c. If 18,900 units of the new product could be sold at a price of $14.80 per unit, and the company's other business did not change. calculate D&R's total operating income and average contribution margin ratio. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Total operating income Average contribution margin ratio: Required A Required B Required C If 18,900 units of the new product could be sold at a price of $14.80 per unit, and the company's other business did not change, calculate D&R's total operating income and average contribution margin ratio. Note: Round your intermediate calculations to 2 decimal places. Round "Average contribution margin ratio" to 2 decimal places. $ (484,000) (107.23) % < Required B www.g Required C Show less a
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Related Book For
Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura
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