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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