Question: Should option B be introduced. Provide explanation - Why or why not? Exhibit 2 Product A Product B Total $ 000's $ 000's $ 000's

Should option B be introduced. Provide explanation - Why or why not?

Exhibit 2 Product A Product B Total

$ 000's $ 000's $ 000's

Sales 47,000 13,000 60,000

COGS 16,000 7,250 23,250

Gross Margin 31,000 5,750 36,750

Selling Costs 6,500 1,000 7,500

Shipping Costs 14,000 5,600 19,600

General

Expenses 4,000 500 4,500

Profit before Tax 6,500 -1,350 5,150

Produce product B?

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