only looking for number 2

Your company is considering adding a new model to its existing product line. Currently, you sell two models, Good and Best. You are considering adding a new modelBetter to the product line. You have the following data: Model Good Best Better Selling Price $3500 $6700 $5300 Variable Cost $2700 $4700 $3700 Demand last year 7000 units 3750 units New this year 1) You have asked the Sales department for a forecast for the upcoming year and they have suggested that if the new model is introduced, sales for the Better model would be expected to be about 5000 units total. They believe half of the Better model sales will be from new customers and the other half will be from customers switching from the Good and Best models they would normally have bought (cannibalization). They believe the cannibalization will be split evenly between the two existing models. In addition, manufacturing suggests the company will incur an additional $2,000,000 in fixed costs to adapt the current production line to the new model. Should you add the Better model given the Sales department's forecasts? Why or why not? 2) You have also asked the Marketing department for a forecast for the upcoming year and they have suggested that if the new model is introduced, sales for the Better model would be expected to be about 8000 units total. They forecast 5000 units will be cannibalized from the other models with 3000 from the otherwise expected sales of the Best model and the remaining 2000 from Good model sales. They have the same estimate from manufacturing that suggests the company will incur an additional $2,000,000 in fixed costs to adapt the current production line to the new model. Should you add the Better model according to the Marketing department forecasts? Why or why not