B. C. D&R Corporation has annual revenues of $375,000, an average contribution margin ratio of 32%, and fixed expenses of $150,000. Required: a. Management is considering adding a new product to the company's product line. The new item will have $9.52 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 $26,880 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 16,000 units of the new product could be sold at a price of $15.50 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. Required A Required B Management is considering adding a new product to the company's product line. The new item will have $9.52 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. Note: Round your answer to 2 decimal places. Selling price Required A Break-even Required B Required A Required C Required B per unit If the new product adds an additional $26,880 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? Note: Do not round intermediate calculations. < Required A Required C units Total operating income Average contribution margin ratio Required C < Required A Required B > Daquien D Show less A Required C > If 16,000 units of the new product could be sold at a price of $15.50 per unit, and the company's other business did not change, calculate D&R's total operating income and average contribution margin ratio. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
B. C. D&R Corporation has annual revenues of $375,000, an average contribution margin ratio of 32%, and fixed expenses of $150,000. Required: a. Management is considering adding a new product to the company's product line. The new item will have $9.52 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 $26,880 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 16,000 units of the new product could be sold at a price of $15.50 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. Required A Required B Management is considering adding a new product to the company's product line. The new item will have $9.52 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. Note: Round your answer to 2 decimal places. Selling price Required A Break-even Required B Required A Required C Required B per unit If the new product adds an additional $26,880 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? Note: Do not round intermediate calculations. < Required A Required C units Total operating income Average contribution margin ratio Required C < Required A Required B > Daquien D Show less A Required C > If 16,000 units of the new product could be sold at a price of $15.50 per unit, and the company's other business did not change, calculate D&R's total operating income and average contribution margin ratio. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:B.
C.
D&R Corporation has annual revenues of $375,000, an average contribution margin ratio of 32%, and fixed expenses of $150,000.
Required:
a. Management is considering adding a new product to the company's product line. The new item will have $9.52 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 $26,880 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 16,000 units of the new product could be sold at a price of $15.50 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.
Required A Required B
Management is considering adding a new product to the company's product line. The new item will have $9.52 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.
Note: Round your answer to 2 decimal places.
Selling price
Required A
Required C
Required B
Break-even
per unit
< Required A
Required C
units
Total operating income
Average contribution margin ratio
If the new product adds an additional $26,880 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?
Note: Do not round intermediate calculations.
Required B >
< Required A
Show less A
Required C >
Required A Required B Required C
If 16,000 units of the new product could be sold at a price of $15.50 per unit, and the company's other business did not
change, calculate D&R's total operating income and average contribution margin ratio.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
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