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$5.00 calcutating selling price new product; break even
- From Business: Accounting
- Closed, but you can still post tutorials
- Due on Nov. 16, 2008
- Asked on Nov 16, 2008 at 9:54:15PM
Q:George Corp. has annual revenues of $375,000, an averagew contribution margin ratio of 32%, ans fixed expenses of $150,000.
Consider Exercise 12-8-a. What is the selling price required to keep contribution margin ratio constant?
NOTE: Type your answer as a number with THREE decimal places (in the format 9.999 or 99.999).
Consider Exercise 12-8-b. How many units of the new product must be sold (if the selling price is $14.00) to breakeven on the new product?
HINT: The only relevant fixed costs for this question are those associated with the new product ($30,600).
NOTE: Type your answer as a whole number with a comma (in the format 9,999 or 99,999).
