Question: Current Attempt in Progress Tharp Company operates a small factory in which it manufactures two products:Cand D. Production and sales results for last year were

 Current Attempt in Progress Tharp Company operates a small factory in

Current Attempt in Progress Tharp Company operates a small factory in which it manufactures two products:Cand D. Production and sales results for last year were as follows Units sold Selling price per unit Variable cost per unit Fixed cost per unit C D 9.100 19.600 $95 $77 50 41 22 22 For purposes of simplicity, the firm averages total fixed costs over the total number of units of Cand produced and sold. The research department has developed a new product (E) as a replacement for product D. Market studies show that Tharp Company could sell 11.200 units of Enext year at a price of $115, the variable cost per unit of Eis $45. The introduction of product E will lead to a 11% increase in demand for product and discontinuation of product D. If the company does not introduce the new product, it expects next year's results to be the same as last year's Compute company profit with products C&D and with products C&E Net profit with products C&D Net profit with products C&E S $ Should Tharp Company introduce product next year? Ans sales 30. Attempts: 0 of 1 used Sul Aww Asentant torde You de bo rded Tue Mars, 2000, 400 JPM (America Chicago osoon a Imag man last 1 Type here to search

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