If the Contribution Margin on a New Product Line Is

question 38

Multiple Choice

If the contribution margin on a new product line is $15,fixed costs are $165,000,and the total market for the product is 22,000 units,then the breakeven analysis would recommend that the company

• A)abandon the new product line.
• B)decrease the sales price per unit.
• C)increase fixed costs (such as advertising)to lower the breakeven units.
• D)adopt the new product line.

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Definitions:

Weight Concerns

Issues or anxieties an individual may have regarding their body weight, often related to fears of being overweight or underweight and the societal pressures surrounding body image.

Eating Disorder

Disorders characterized by abnormal or disturbed eating habits which negatively impact a person's health and well-being.

Trauma Exposure

The experience of having witnessed or undergone a traumatic event, which can lead to mental health disorders like PTSD.