Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

D&R Corp. has annual revenues of $262,000, an average contribution margin ratio of 35%, and fixed expenses of $113,900. Required: a. Management is considering adding

image text in transcribed
image text in transcribed
image text in transcribed
D&R Corp. has annual revenues of $262,000, an average contribution margin ratio of 35%, and fixed expenses of $113,900. Required: a. Management is considering adding a new product to the company's product line. The new item will have $9.2 of variable costs per unit. Calculate the selling price that will be required if this product is not to affect the average contribution margin ratio. b. If the new product adds an additional $29.500 to D&R's fixed expenses, how many units of the new product must be sold at the price calculated in part a to break even on the new product? c. If 19.400 units of the new product could be sold at a price of $14.6 per unit and the company's other business did not change, calculate D&R's total operating income and average contribution margin ratio. Complete this question by entering your answers in the tabs below. Required A Required B Required Management is considering adding a new product to the company's product line. The new item will have $9.20 of variable costs per unit. Calculate the selling price that will be required if this product is not to affect the average contribution margin ratio. (Round your answer to 2 decimal places.) Selling price por unit Required B > D&R Corp. has annual revenues of $262.000, an average contribution margin ratio of 35%, and fixed expenses of $113.900. Required: o. Management is considering adding a new product to the company's product line. The new item will have $9.2 of variable costs per unit. Calculate the selling price that will be required if this product is not to affect the average contribution margin ratio b. If the new product adds an additional $29,500 to D&R's fixed expenses, how many units of the new product must be sold at the price calculated in part a to break even on the new product? c. if 19.400 units of the new product could be sold at a price of $14.6 per unit, and the company's other business did not change, calculate D&R's total operating income and average contribution margin ratlo. Complete this question by entering your answers in the tabs below. Required a Required B Required If the new product adds an additional $29,500 to D&R's faced expenses, how many units of the new product must be sold at the price calculated in part a to break even on the new product? (Do not round intermediate calculations.) units Break even

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quality Auditing Note Book Journal Notes Checklist Questions Observations Evidence Log

Authors: Just Visualize It, The Quality Guy

1st Edition

1726688402, 978-1726688406

More Books

Students also viewed these Accounting questions

Question

Address an envelope properly.

Answered: 1 week ago

Question

Discuss guidelines for ethical business communication.

Answered: 1 week ago