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:

Fair Trade

An organized movement that aims to help producers in developing countries achieve better trading conditions and promote sustainability.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and marked by significant events and battles across continents.

Japanese Industrialists

Business leaders and entrepreneurs in Japan who have significantly contributed to the development and growth of the country's industrial sector.

Economies Of Scale

Reductions in average total cost as output rises.