Assume that a merchandiser purchases a product from a supplier for $3.00 per unit and then sells it to customers for $5.00 per unit. Ordinarily, the company sell 30,000 units per year; however, it is considering lowering its price to $4.50 per unit. At the lower price, the company expects to sell 48,750 units per year. What total contribution margin will the company earn if it sells 48,750 units at a price of $4.50 per unit? Multiple Choice $69,000 $82,875 $73,125 $63,375 Assume that a company plans to introduce a new product to the market at a target selling price of $20 per unit. It is investing $4,000,000 to purchase the equipment needed to produce and sell 250,000 units per year. Assuming the company's required rate of return on all investments is 12.50%, what is the new product's target cost per unit? Multiple Choice $22.48 $19.00 $23.48 $18.00 Assume that a merchandiser purchases a product from a supplier for $3.00 per unit and then sells it to customers for $5.00 per unit. Ordinarily, the company sell 30,000 units per year; however, it is considering lowering its price to $4.50 per unit. At the lower price, the company expects to sell 50,000 units per year. How many units would the company need to sell at the lower price of $4.50 per unit to equal the total contribution margin earned at the higher price of $5.00 per unit? Multiple Choice 44,000 units 42.000 units 40,000 units 45,000 units