Required to keep contribution margin ratio constant

Reference no: EM13942190

George Corp. has annual revenues of $375,000, an averagew contribution margin ratio of 32%, ans fixed expenses of $150,000.

Consider Exercise 12-8-a. What is the selling price required to keep contribution margin ratio constant?

NOTE: Type your answer as a number with THREE decimal places (in the format 9.999 or 99.999).

Consider Exercise 12-8-b. How many units of the new product must be sold (if the selling price is $14.00) to breakeven on the new product?

HINT: The only relevant fixed costs for this question are those associated with the new product ($30,600).

NOTE: Type your answer as a whole number with a comma (in the format 9,999 or 99,999).

Reference no: EM13942190

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