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Acme Company is considering the addition of a new product line. Management expects annual sales of the new product to be 4 , 0 0
Acme Company is considering the addition of a new product line. Management expects annual sales of the new product to be units at a price of $ per unit. Variable operating costs are $ per unit and the new product line will increase Acme's total fixed operating costs by $ If Acme adds the new product line, the contribution margin on its existing products is expected to drop $ per year. What is the minimum perunit selling price that Acme must charge to break even on the production and sale of the new product line? $ per unit $ per unit $ per unit $ per unit None of the above
Acme Company is considering the addition of a new product line. Management expects annual sales of the new product to be units at a price of $ per unit. Variable operating costs are $ per unit and the new product line will increase Acme's total fixed operating costs by $ If Acme adds the new product line, the contribution margin on its existing products is expected to drop $ per year. What is the minimum perunit selling price that Acme must charge to break even on the production and sale of the new product line?
$ per unit
$ per unit
$ per unit
$ per unit
None of the above
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