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COTB MC Qu. 13-43 (Algo) Assume a company is considering adding... 3 Assume a company is considering adding a new product line with the following
COTB MC Qu. 13-43 (Algo) Assume a company is considering adding... 3 Assume a company is considering adding a new product line with the following estimated cost and revenue data: 10 paine Annual sales Selling price per unit Variable manufacturing conta per unit Variable welling costs per unit Incremental fixed manufacturing cost Incremental fixed selling conta Allocated common fixed administrative conte 6,000 units $ 180 $ 140 15 $65,000 per year 540.000 per year $45,000 per year of the new product line added, the company expects that it will increase the sales of complementary products, thereby generating $221,750 in incrementat contribution marain from those products. What in the linancial advantage disavantace) of adding the new product line? Multiple Choice
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