Banner ID is 01721391

Sun Microsystems, is a manufacturer of mid-size computers, which are primarily used by medium and small businesses. Sun Microsystems's product line currently consists of three models of mid-size computers. The following data are available regarding the models: Model Selling Price per Unit Variable Cost per Unit Demand/Year (units) Model SMX1 $1,800 $1,000 2,500 Model SMX2 $2,700 $1,500 1,000 Model SMX3 $3,000 $2,000 800 Sun Microsystems is considering the addition of a fourth model to its line of mid-size computers. This model, the SMX-4 would be sold for $4,000. The variable cost of this unit is the last 3 digits of your Banner ID The demand for the new Model SMX4 is estimated to be 500 units per year. Forty percent (40%) of the new model's unit sales are expected to come from other models already being manufactured by Sun Microsystems 20% of the cannibalized amount from Model SMX-1, 30% from Model SMX-2, 50% from Model SMX-3. Sun Microsystems will incur a fixed cost of $300,000 to add the new model SMX-4 to its product line. The president of Sun Microsystems will only fund projects which show a positive cash flow by the end of the first year of the project. Answer the following questions: 1) What is your Banner ID? 2) What is the contribution for the 3 original product (SMX1, SMX2, SMX3) prior to SMX4? 3) What is unit contribution for SMX-4 4) Based on the your analysis of the above data, should Sun Microsystems add the new Model SMX-4 to its line of mid-size computers? 5) Why (Support answer with detailed analysis of demand and contribution). MUST SHOW WORK FOR CREDIT