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Business, 25.12.2019 06:31 KillerSteamcar

The addition of a new product. the expected cost and revenue data for the new product are as follows: annual sales 2,500 unitsselling price per unit $ 304variable costs per unit: production $ 125selling $ 49avoidable fixed costs per year: production $ 50,000selling $ 75,000allocated common fixed corporate costs per year$ 55,000if 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. if the new product is added next year, the financial advantage (disadvantage) resulting from this decision would be:

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