D&R Corporation has annual revenues of $$253,000,$ an average contribution margin ratio of $35\%,$ and fixed expenses of $$101,300.$

Required:

Management is considering adding a new product to the company's product line. The new item will have $$8\mathrm{.}70$ 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.

If the new product adds an additional $$32,600$ to D&R$\text{'}$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?

If $21,600$ units of the new product could be sold at a price of $$13\mathrm{.}80$ per unit, and the company's other business did not change, calculate D&R$\text{'}$s total operating income and average contribution margin ratio.$\backslash$table$[[$Total operating income,$${?}_{352,370},],[$Average contribution margin ratio,,$\%$