lexiejones
Nov 17, 2012, 02:29 PM
It is given that the annual revenues are: $264,000. The average contribution margin ratio is 33%, fixed expenses is $115,200.
Management is considering adding a new product to the company's product line. The new item will have $9.2 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.
Management is considering adding a new product to the company's product line. The new item will have $9.2 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.