Exercise $12-16($Algo$)$ Calculate selling price of new product; what$-$if questions; breakeven LO $12-8,12-9,12-10,12-11$

D&R Corporation has annual revenues of $$270,000,$ an average contribution margin ratio of $33\%,$ and fixed expenses of $$118,600.$

Required:

a$.$ Management is considering adding a new product to the company's product line. The new item will have $$8\mathrm{.}00$ 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 $$32,400$ to D&R$\text{'}$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 $18,600$ units of the new product could be sold at a price of $$14\mathrm{.}60$ per unit, and the company's other business did not change, calculate D&R$\text{'}$s total operating income and average contribution margin ratio.

Complete this question by entering your answers in the tabs below.

Required A

Required B

Required C

If $18,600$ units of the new product could be sold at a price of $$14\mathrm{.}60$ per unit, and the company's other business did not change, calculate D&R$\text{'}$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.

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$\backslash$table$[[$Total operating income,$],[$Average contribution margin ratio,$\%]]$