Exhibit 22-6 Newell Company presently has three product lines: paper, stamps, and printer ink. The company is considering adding a new line of pens. Market research shows the following expected revenues and costs if the pen line were added:
Refer to Exhibit 22-6. What is the lowest selling price that Newell should consider that would still make it economically desirable to add this product line?

Question

Exhibit 22-6 Newell Company presently has three product lines: paper, stamps, and printer ink. The company is considering adding a new line of pens. Market research shows the following expected revenues and costs if the pen line were added:
 Refer to Exhibit 22-6. What is the lowest selling price that Newell should consider that would still make it economically desirable to add this product line?

Quizplus · Accepted Answer

The Answer of Exhibit 22-6 Newell Company presently has three product lines: paper, stamps, and printer ink. The company is considering adding a new line of pens. Market research shows the following expected revenues and costs if the pen line were added:
 Refer to Exhibit 22-6. What is the lowest selling price that Newell should consider that would still make it economically desirable to add this product line?

Exhibit 22-6 Newell Company Presently Has Three Product Lines: Paper