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Business, 21.12.2019 06:31 zoeybuch5

Key company is considering the addition of a new product to its current lines. the expected cost and revenue data for the new product are as follows : annual sales : 2500 unitsselling price per unit : $304variable cost per unit : production : $125selling : $49avoidable fixed cost per year : production : $50,000selling : $75,000allocating common corporate cost per year : $55,000if the new product is added, the combined contribution margin of the other , existing product lines is expected to drop $65,000 per year, the common corporate costs would be unaffected by decision of whether to add the product. if new product is added next year, the increase in net operating income from this decision would be : a) 325,000 b) 200,000 c) 145,000 d) 135,000 e) none

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