Freddy Fan Corporation is considering the addition of a new model fan, the XYZ, to its current products. The expected cost and revenue data for the XYZ fan are as follows: If the XYZ is added as a new product, it is expected that the contribution margin of other products will drop by $7,000 per year. At what selling price would the new product be just breaking even?

Select one:

a. $52.25 per unit

b. $50.50 per unit

c. $55.75 per unit

d. $49.00 per unit

Freddy Fan Corporation is considering the addition of a new model fan, the XYZ, to its current products. The expected cost and revenue data for the XYZ fan are as follows: If the XYZ is added as a new product, it is expected that the contribution margin of other products will drop by $7,000 per year. At what selling price would the new product be just breaking even? Select one: a. $52.25 per unit b. $50.50 per unit c. $55.75 per unit d. $49.00 per unit