The Flint Fan Corporation Is Considering the Addition of a New

question 154

Multiple Choice

The Flint Fan Corporation is considering the addition of a new model fan, the F-27, to its current products.The expected cost and revenue data for the F-27 fan are as follows: If the F-27 is added as a new product, it is expected that the contribution margin of other products will drop by $7, 000 per year. At what selling price would the new product be just breaking even?

• A)$52.25 per unit
• B)$50.50 per unit
• C)$55.75 per unit
• D)$49.00 per unit

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Definitions:

Logarithms

The level to which a base, usually 10 or e, is raised to generate a particular number.

Condense

In mathematics, to express a complex expression in a simpler form by combining like terms or using mathematical properties.

Properties

The characteristics or attributes that help define or identify mathematical objects, operations, or relationships.

Approximate

A value or quantity that is nearly but not exactly correct, often used when exact figures are not necessary or available.