QUESTION 21 Assume a company is considenng adding a new product line with the following...
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QUESTION 21 Assume a company is considenng adding a new product line with the following estimated cost and revenue data Annual sales Selling price per unit Variable manufacturing costs per unit Variable selling costs per unit Incremental fixed manufacturing costs Incremental foxed selling costs Allocated common fixed administrative costs 6000 units S 180 S 140 S 15 $65,000 per year $40,000 per year $45,000 per year If the new product line is added, the company expects that it will increase the sales of complementary products, thereby generating $35,000 in incremental contribution margin from those products What is the finahcial advantage (disadvantage) of adding the new product lino? $35,000 $80,000 $45,000 5120,000 Click Save and Submit to save and submit. Click Save Answers to see all answers 80F arch BI
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