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Assume a company is considering adding a new product. The expected cost and revenue data for this product are as follows: 5,000 units $ 60
Assume a company is considering adding a new product. The expected cost and revenue data for this product are as follows: 5,000 units $ 60 Annual sales Unit selling price Unit variable costs: Production Selling Incremental fixed costs per year: Production Selling $ 33 $ 6 $ 33,500 $ 45,000 If the company adds the new product, it expects the contribution margin of other product lines to drop by $15,400 per year. What is the financial advantage (disadvantage) of adding the new product? Multiple Choice $41,900 $26,500 O $11,100 $89,600
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