Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I JUST NEED PART C ONLY D&R Corp. has annual revenues of $262,000, an average contribution margin ratio of 34%, and fixed expenses of $108,300.

I JUST NEED PART C ONLY
image text in transcribed
D\&R Corp. has annual revenues of $262,000, an average contribution margin ratio of 34%, and fixed expenses of $108,300. Required: o. Management is considering adding a new product to the company's product line. The new item will have $8.4 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. b. If the new product adds an additional $30,200 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? c. If 19,400 units of the new product could be sold at a price of $14.6 per unit, and the company's other business did not change, calculate D\&R's total operating income and average contribution margin ratio. Complete this question by entering your answers in the tabs below. If 19,400 units of the new product could be sold at a ptice of $14.60 per unit, and the company's other business did not change, calculate D8R's total operating incorne and average contribution margin ratio. (found your intermediate calculations to 2 decimal places, Roond "Average contribution marqin ratio" to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Environmental Health And Safety Audits

Authors: Lawrence B. Cahill, Raymond W. Kane

9th Edition

1605907081, 9781605907086

More Books

Students also viewed these Accounting questions

Question

2.5 Describe a social audit.

Answered: 1 week ago