D&R Corp. has annual revenues of $275,000, an average contribution margin ratio of 34%, and fixed expenses of $100,000.

A. If the new product adds an additional $30,600 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?

___________ Units

B. If 20,000 units of the new product could be sold at a price of $13.75 per unit, and the company's other business did not change, calculate D&R's total operating income and margin ration

___________ Operating Income

___________ Average contribution margin ration %