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Business, 13.02.2020 18:56 lattimorekeonna1

Key Corporation is considering the addition of a new product. The expected cost and revenue data for the new product are as follows Annual sales Selling price per unit Variable costs per unit: 2,500 units $304 Production Selling $ 125 $ 49 Avoidable fixed costs per year: Production Selling $50,000 $75,000 $55,000 Allocated common fixed corporate costs per year If the new product is added, the combined contribution margin of the other, existing products is expected to drop $65,000 per year. Total common fixed corporate costs would be unaffected by the decision of whether to add the new product If the new product is added next year, the financial advantage (disadvantage) resulting from this decision would be.

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Key Corporation is considering the addition of a new product. The expected cost and revenue data for...
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