Assume a company is considering adding a new product. The expected cost and revenue data for this product are as follows:

Annual sales $5,000$ units

Unit selling price $ $60$

Unit variable costs:

Production $ $33\mathrm{.}00$

Selling $ $6\mathrm{.}00$

Incremental fixed costs per year:

Production $ $35,000$

Selling $ $45,000$

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

$$58\mathrm{.}70$

$$42\mathrm{.}70$

$$55\mathrm{.}00$

$$43\mathrm{.}70$