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.

---

Definitions:

Hands-Free Cellular

Devices or systems that allow for the use of cellular phones without the need to physically hold the phone, often using Bluetooth technology.

Text Messaging

The act of composing and sending brief electronic messages between two or more mobile devices or fixed or portable devices over a phone network.

Hand-Held Cellular

A portable device, often referred to as a mobile phone or smartphone, used for communication.

Cocktail Party Phenomenon

The capacity to concentrate one's listening efforts on a specific sound while ignoring other surrounding noises.