Explore BrainMass

Explore BrainMass

    Adding a new product to a lineup

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The Wiltmore Co. would like to add a new product to complete their lineup. They want to know how many units they must sell to limit their potential loss to their initial investment. What is this quantity if their fixed costs are $12,000, the depreciation expense is $2,500, and the contribution margin is $1.30? (Round to whole units)

    © BrainMass Inc. brainmass.com June 3, 2020, 9:09 pm ad1c9bdddf
    https://brainmass.com/business/finance/the-wiltmore-co-would-like-to-add-a-new-product-to-complete-their-lineup-168342

    Solution Summary

    The question of break-even quantity is addressed in brief calculations.

    $2.19

    ADVERTISEMENT