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15 pts Note: You MUST show all of your work in order for any partial credit to be given. Type your calculations and highlight answers
15 pts Note: You MUST show all of your work in order for any partial credit to be given. Type your calculations and highlight answers clearly. Use the following guidelines for rounding decimals (a) percentage - one decimal point, (b) units- upward to next full unit, and (c) currency two decimal points. Drone Concepts, Inc. (DCI) manufacturers a line of drones that are distributed to large retailers. The line consists of four models of drones. The following data is available regarding the models: DCI Selling Price Variable Cost Model Demand/Year (units) per Unit per Unit 215 SONY unit, and (c) currency = two decimal points. Concepts, Inc. (DCI) manufacturers a line of drones that are distributed to large The line consists of four models of drones. The following data is available retailers. regarding the models Variable Cost per Unit $215 $110 $105 $135 Demand/Year DCI Selling Price (units) 1,535 2,865 3,535 3,300 per Unit $635 $315 $415 $515 Model D1 Model D2 Model D3 Model D4 one Concepts is considering the addition of a fifth model to its line of drones. T del would be sold to retailers for $575. The variable cost of this unit is $315.T and for the new Model D5 is estimated to be 2,000 units per year. Fifty perc 2,865 3,535 3,300 $110 $105 $135 $41 $515 Drone Concepts is considering the addition of a fifth model to its line of drones. This model would be sold to retailers for $575. The variable cost of this unit is $315. The demand for the new Model DS is estimated to be 2,000 units per year. Fifty percent of these unit sales of the new model is expected to r models a being manufactured by Drone Concepts (10 percent from Model D1, 30 percent from Model D2, 40 percent from Model D3, and 20 percent from Model D4). Drone Concepts will incur a fixed cost of $550,000 to add the new model to the line. Based on the preceding data, should DCI add the new Model D5 to its line of drones? hy or why not? (Please be specific and remember to show all work CLEARLY and chlight your answer in order to receive full credit otherwise points will be ucted)
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