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Cabin Creek Company is considering adding a new line of kitchen cabinets. The company's accountant...

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Accounting

Cabin Creek Company is considering adding a new line of kitchen cabinets. The company's accountant provided the following
estimated data for these cabinets:
If the kitchen cabinets are added as a new product line, the company expects that the contribution margin earned from selling its other
products will decrease by $216,000 per year.
Required:
What is the annual financial advantage (disadvantage) of adding the new line of kitchen cabinets?
What is the lowest selling price per unit that could be charged for the cabinets and still make it economically desirable for the
company to add the new product line?
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