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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 year: Production Selling $ 30.20 $ 6 $ 35,000 $45,000 If the company adds 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? Multiple Choice $39.90 $55.90 $52.20
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