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: 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. At what selling price would the new product be just breaking even?
A)$52.25 per unit
B)$50.50 per unit
C)$55.75 per unit
D)$49.00 per unit

Question

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:  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. At what selling price would the new product be just breaking even?
A)$52.25 per unit 
B)$50.50 per unit 
C)$55.75 per unit 
D)$49.00 per unit

Quizplus · Accepted Answer

The Answer of 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:  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. At what selling price would the new product be just breaking even?
A)$52.25 per unit 
B)$50.50 per unit 
C)$55.75 per unit 
D)$49.00 per unit

The Flint Fan Corporation Is Considering the Addition of a New