Assume a company is considering adding a new product. The expected cost and revenue data for this product are sfolows. 5,000 units $ 60 42 Annual sales Unit welling price Unit variable costs: Production Selling Incremental fixed costs per year: Production Selling $30.00 $ 6 $ 35,000 $ 45,000 If the company adds this new product. It expects the contribution margin of other product lines to drop by $19,500 per year. What is the lowest price the company could charge and still break-even on the new product? Multiple Choice $55.70 $55.70 $39.70 $52.00 $40.70 Assume that a company makes three products-Product A, Product B, and Product Cand provides the following information with expect to those products: Product Product Product C $ 70 $ 75 $ 85 Selling price Variable costs per unit Direct materials Direct labor Variable overhead Total variable cost per unit Contribution margin per unit Machine-hours per unit 16 40 2 58 $ 12 24 28 2 54 $ 21 20 32 3 55 $. 30 1.0 3.0 4.0 The company Incurs total fixed costs of $50,000. The maximum demand for each of its products is 600 units. The company has only 2.600 machine-hours available for production. Assuming the company has made optimal use of its 2,600 machine-hours, what is the maximum amount per hour the company should be willing to pay to rent additional machine-hours of capacity? Multiple Choice B The company Incurs total fixed costs of $50,000. The maximum demand for each of its products is 600 units. The company has any 2.000 machine-hours available for production. Assuming the company has made optimal use of its 2,600 machine hours, what is the maximum amount per hour the company should be willing to pay to rent additional machine hours of capacity 6:03 Multiple Choice $7.00 O $7.50 $12.00 $21.00