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Assume a company is considering adding a new product line with the following estimated cost and revenue data: Annual sales 6,000 units Selling price per
Assume a company is considering adding a new product line with the following estimated cost and revenue data: Annual sales 6,000 units Selling price per unit $ 190 Variable manufacturing costs per unit $ 140 Variable selling costs per unit $ 15 Incremental fixed manufacturing costs $ 66,000 per year Incremental fixed selling costs $ 42,000 per year Allocated common fixed administrative costs $ 48,000 per year If the new product line is added, the company expects that it will increase the sales of complementary products, thereby generating $36,000 in incremental contribution margin from those products. What is the lowest selling price per unit that could be charged for the new product line and still allow the company to break-even
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