Solved

Key Corporation Is Considering the Addition of a New Product

Question 141

Multiple Choice

Key Corporation is considering the addition of a new product. The expected cost and revenue data for the new product are as follows:
Key Corporation is considering the addition of a new product. The expected cost and revenue data for the new product are as follows:    If the new product is added, the combined contribution margin of the other, existing products is expected to drop $65,000 per year. Total common fixed corporate costs would be unaffected by the decision of whether to add the new product. -At what selling price would the new product be just breaking even? A)  $246 per unit B)  $250 per unit C)  $232 per unit D)  $282 per unit If the new product is added, the combined contribution margin of the other, existing products is expected to drop $65,000 per year. Total common fixed corporate costs would be unaffected by the decision of whether to add the new product.
-At what selling price would the new product be just breaking even?


A) $246 per unit
B) $250 per unit
C) $232 per unit
D) $282 per unit

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions