Exercise 20-17 Tharp Company operates a small factory in which it manufactures two products: C and D. Production and sales results for last year were as follows Units sold Selling price Variable cost per unit 4942 Fixed cost per For purposes of simplicity, the firm averages total fixed costs over the total number of units of C and D produced and sold. 9,200 19,900 per unit 595 78 unit The research department has developed a new product (2) as a replacement for product D. Market studies show that Tharp Company could sell 11,600 units of E next year at a price of $114; the variable cost per unit of E is $42. The introduction of product E will lead to a 12% increase in demand for product C and discontinuation of product Dlf the company does not introduce the new product, it expects next year's results to be the same as last year's. Compute compary profit with products C& D and with products C& E. Net profit w C & D Net profit with products C &E with products Should Tharp Compeny introduce product E next year