Hayes Company operated at normal capacity during the current year. Sales occurred at an average price of $20.15 per unit. Variable manufacturing costs were $11.00 per unit, and variable marketing costs were $5.01 per unit sold. Fixed costs were incurred uniformly throughout the year and amounted to $165867 for manufacturing.

If Hayess variable manufacturing costs unexpectedly increase by 10%, what is the new unit selling price that would yield the same contribution margin ratio as before the cost increase?

Select one:

a. $21.53

b. $182453.70

c. $22.16

d. $20.15 The correct answer is: $21.53

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Hayes Company operated at normal capacity during the current year, producing 53661 units of its single product. Sales totaled 45342 units at an average price of $20.15 per unit. Variable manufacturing costs were $11.00 per unit, and variable marketing costs were $5.01 per unit sold. Fixed costs were incurred uniformly throughout the year and amounted to $165867 for manufacturing and $50282 for marketing.

If Hayess variable manufacturing costs unexpectedly increase by 10%, what is the new unit selling price that would yield the same contribution margin ratio as before the cost increase?

Select one:

a. $22.16

b. $20.15

c. $21.53 The correct answer is: $21.53

d. $20.78