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D&R Corp. has annual revenues of $268,000, an average contribution margin ratio of 34%, and fixed expenses of $119,100. Required: a. Management is considering adding
D&R Corp. has annual revenues of $268,000, an average contribution margin ratio of 34%, and fixed expenses of $119,100.
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.
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