Reference: 09-08
the Western Company Is Considering the Addition of a New

question 81

Multiple Choice

Reference: 09-08
The Western Company is considering the addition of a new product to its current product lines. The expected cost and revenue data for the new product are as follows: $$\begin{array} { | l | l | l | } \hline \text { Annual sales } & 3,000 & \text { units } \\\hline \text { Selling price per unit } & \$ 309 & \\\hline \text { Variable costs per unit: } & & \\\hline \text { Production } & \$ 130 & \\\hline \text { Selling } & \$ 50 & \\\hline \text { Avoidable fixed costs per year: } & & \\\hline \text { Production } & \$ 51,000 & \\\hline \text { Selling } & \$ 75,000 & \\\hline \text { Unavoidable allocated fixed corporate costs per year } & \$ 54,000 & \\\hline\end{array}$$ If the new product is added to the existing product line, then sales of existing products will decline. As a consequence, the contribution margin of the other existing product lines is expected to drop $78,000 per year.
-What is the lowest selling price per unit among those listed below that could be charged for the new product and still make it economically desirable to add the new product?

• A)$222.
• B)$291.
• C)$249.
• D)$240.

Understand different strategies of pain control and their practical applications.

Identify techniques that are not effective in reducing pain.

Recognize the benefits and mechanisms of using deep relaxation for pain relief.

Learn about the psychological aspect of pain management through positive self-talk.

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Definitions:

Subject Matter Jurisdiction

The authority of a court to hear and adjudicate cases of a particular type or cases relating to a specific subject matter.

Exclusive Federal

Pertains to areas of law and regulatory authority that are solely governed by the federal government, without state interference.

Concurrent Federal

The situation where federal laws or actions operate simultaneously with state laws or actions in the same area.

Long-Arm

Refers to statutes that allow for a court to exercise personal jurisdiction over an out-of-state defendant based on certain activities that occurred within the state.