The Flint Fan Corporation Is Considering the Addition of a New

Multiple Choice

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