The Cabinet Shoppe is considering the addition of a new line of kitchen cabinets to its current product

lines. Expected cost and revenue data for the new cabinets are as follows:

Annual sales $5,000$ units

Selling price per unit $$180$

Variable costs per unit:

Production $$120$

Selling $$15$

Avoidable fixed costs per year:

Production $$40,000$

Selling $$60,000$

Allocated common fixed costs per year $$45,000$

If the new cabinets are added, it is expected that the contribution margin of other product lines at the

cabinet shop will drop by $$20,000$ per year.

What is the lowest selling price per unit that could be charged for the new cabinets and still make it

economically desirable to add the new product line?

A$)$ $$159.$

B$)$ $$164.$

C$)$ $$171.$

D$)$ $$151.$