Feta Corporation is considering the addition of a new product line. The expected annual revenue and cost data for the new product line are as follows: Unit sales Selling price Variable manufacturing costs Variable selling & administrative expenses Increase in fixed manufacturing costs Increase in fixed selling & administrative expenses O $225 per unit O $250 per unit O $275 per unit O$300 per unit 2,500 units $304 per unit $126 per unit $49 per unit If Feta adds the new product line, the contribution margin on its existing products is expected to drop $62,500 per year. What is the minimum per-unit selling price that Feta must charge to break even on the production and sale of the new product line? None of the above $50,000 $75,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Feta Corporation is considering the addition of a new product line. The expected annual revenue
and cost data for the new product line are as follows:
Unit sales
Selling price
Variable manufacturing costs
Variable selling & administrative expenses
Increase in fixed manufacturing costs
Increase in fixed selling & administrative expenses
O $225 per unit
O $250 per unit
O $275 per unit
O$300 per unit
2,500 units
$304 per unit
$126 per unit
$49 per unit
If Feta adds the new product line, the contribution margin on its existing products is expected to
drop $62,500 per year. What is the minimum per-unit selling price that Feta must charge to break
even on the production and sale of the new product line?
None of the above
$50,000
$75,000
Transcribed Image Text:Feta Corporation is considering the addition of a new product line. The expected annual revenue and cost data for the new product line are as follows: Unit sales Selling price Variable manufacturing costs Variable selling & administrative expenses Increase in fixed manufacturing costs Increase in fixed selling & administrative expenses O $225 per unit O $250 per unit O $275 per unit O$300 per unit 2,500 units $304 per unit $126 per unit $49 per unit If Feta adds the new product line, the contribution margin on its existing products is expected to drop $62,500 per year. What is the minimum per-unit selling price that Feta must charge to break even on the production and sale of the new product line? None of the above $50,000 $75,000
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