Question: A company is considering adding a new product. The expected cost and revenue data for this product are as follows 5,000 units ? Annual sales
A company is considering adding a new product. The expected cost and revenue data for this product are as follows 5,000 units ? Annual sales Unit selling price Unit Variable costs: Production Selling Incremental fixed costs per yean Production Selling $38.90 6 $35,000 $45,000 the company adas this new product, it expects the contribution margin of other product lines to drop by $18,500 per year What is the lowest price the company could charge and still break-even on the new product? Muple Choice O $40.60 541.60 58290
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