Exercise $12-15($Algo$)$ Calculate selling price of new product with a target CM ratio LO $12-8,12-9$

O'Reilly Incorporated makes and sells many consumer products. The firm's average contribution margin ratio is $23\%.$ Management is

considering adding a new product that will require an additional $$10,000$ per month of fixed expenses and will have variable expenses

of $$8\mathrm{.}5$ per unit.

Required:

a$.$ Calculate the selling price that will be required for the new product if it is to have a contribution margin ratio equal to $23\%.$

Note: Round your answer to $2$ decimal places.

b$.$ Calculate the number of units of the new product that would have to be sold if the new product is to increase the firm's monthly

operating income by $$9,700.$

Note: Do not round intermediate calculations.