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Use the following information to answer questions 10 and 11 The Flint Fan Corporation is considering the addition of a new model fan, the F-27,

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Use the following information to answer questions 10 and 11 The Flint Fan Corporation is considering the addition of a new model fan, the F-27, to its current products. The expected cost and revenue data for the F-27 fan are as follows: 4,000 units $58 $34 Annual sales.......... Unit selling price... Unit variable costs: Production Selling..... Avoidable fixed costs per year: Production Selling Allocated common fixed costs per year.. $20,000 $30,000 $55,000 If the F-27 is added as a new product, it is expected that the contribution margin of other products will drop by $7,000 per year. 10) If the F-27 product is added next year, the change in operating income should be A) $15,000 increase B) $23,000 increase C) $30,000 increase D) $5.000 decrease 11) At what selling price would the new product be just breaking even? A) $50.50 per unit B) $52.25 per unit C) S55.75 per unit D) $49.00 per unit

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