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(15 points) Note: You MUST show all of your work in order for any partial credit to be given. Write both your calculations and reasoning

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(15 points) Note: You MUST show all of your work in order for any partial credit to be given. Write both your calculations and reasoning clearly. Use the baek of this pape if more space is needed. currency to dollars and cents.) 3. Virtual Concepts, inc. (VCi) manufacturers a line of DVD recorders (DVRs) that are distributed to large retailers. The line consists of three models of DVRs. The following data is available regarding the models: VCl is considering the addition of a fifth model to its line of DVRs. This model would be sold to retailers for $950. The variable cost of this unit is $515. The demand for the new Model VC 5 is estimated to be 2,000 units per year. Fifty percent of these unit sales of the new model is expected to come from other models already being manufactured by VCI (10 percent from Model VC 1, 30 percent from VC 2, 40 percent from Model VC 3, and 20 percent from Model VC4). VCl will incur a fixed cost of $300,000 to add the new model to the line. Based on the preceding data, should VCI add the new Model VC5 to its line of DVRs? Why or why not? (Remember to show your work CLEARLY)

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