Cabin Creek Company is considering adding a new line of kitchen cabinets. The company's accountant provided the following

estimated data for these cabinets:

If the kitchen cabinets are added as a new product line, the company expects that the contribution margin earned from selling

products will decrease by $$236,000$ per year.

Required:

What is the annual financial advantage $($disadvantage$)$ of adding the new line of kitchen cabinets?

What is the lowest selling price per unit that could be charged for the cabinets and still make it economically desirable for tl

company to add the new product line?

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What is the annual financial advantage $($disadvantage$)$ of adding the new line of kitchen cabinets?