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Bramble Company operates a small factory in which it manufactures two products: A and B. Production and sales results for this year were as follows:

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Bramble Company operates a small factory in which it manufactures two products: A and B. Production and sales results for this year were as follows: For purposes of simplicity, the firm averages total fixed costs over the total number of units of A and B produced and sold. Company could sell 10,050 units of C nest year at a price of $118; the variable costs per unit of C are $49. The introduction of product C will lead to a 10% increase in demand for product A and discontinuation of product B. If the company does not introduce the new product, it expects next year's results to be the same as this year's. Determine whether Bramble Company should introduce product C next year. Why or why not? mpany profit with Products A and B : Comnanv nrofit with Products A and C : Bramble Compary introduce product C next year as the contribution margin

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