Answer the following: Based on the data provided, make the calculations necessary to provide the answers to the following questions: 1. Should VCI add the new Model LX4 to its line of VCRs? 2. Why? (Back up your answer with the calculations you made) Video Concepts, Inc. (VCI) manufactures a line of videocassette recorders (VCRs) that are distributed to large retailers. The line consists of three models of VCRs. The following data are available regarding the models: Model VCR Selling Price per Unit Variable Cost per Unit Demand/Year (units Model LX1 Model LX2 Model LX3 $175 $250 $300 $100 $125 $140 2,000 1,000 500 VCI is considering the addition of a fourth model to its line of VCRs: This model would be sold to retailers for $375. The variable cost of this unit is $225 The demand for the new Model LX4 is estimated to be 300 units per year Sixty percent of these unit sales of the new model is expected to come from other models already being manufactured by VCI o 10 percent from Model LX1 o 30 percent from Model LX2 o 60 percent from Model LX3. VCI will incur a fixed cost of $20,000 to add the new model to the line