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Multiple Choice $58.70 $42.70 $55.00 $43.70 Assume a company is considering adding a new product. The expected cost and revenue data for this product are

image text in transcribed Multiple Choice $58.70 $42.70 $55.00 $43.70

Assume a company is considering adding a new product. The expected cost and revenue data for this product are as follows: Annual sales 5,000 units Unit selling price $ 60 Unit variable costs: Production $ 33.00 Selling $ 6.00 Incremental fixed costs per year: Production $ 35,000 Selling $ 45,000 Ifthe company adds this new product, it expects the contribution margin of other product lines to drop by $18,500 per year. What is the lowest price the company could charge and still break-even on the new product? Multiple Choice $58.70 $42.70 $55.00 $43.70

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