Question
Jackman, Inc., makes and sells many consumer products. The firms average contribution margin ratio is 30%. Management is considering adding a new product that will
Jackman, Inc., makes and sells many consumer products. The firms average contribution margin ratio is 30%. Management is considering adding a new product that will require an additional $12,000 per month of fixed expenses and will have variable expenses of $6 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 30%.(Round your answer to 2 decimal places.) |
selling price per unit: |
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 $8,800.(Do not round your intermediate calculation and round your final answer to nearest whole number.) |
number of units of the new product: |
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