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C D 9,000 19.800 $94 $75 Units sold Unit selling price Unit variable costs Unit fixed costs 49 41 20 20 For purposes of simplicity,

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C D 9,000 19.800 $94 $75 Units sold Unit selling price Unit variable costs Unit fixed costs 49 41 20 20 For purposes of simplicity, the firm averages total fixed costs over the total number of units of Cand D produced and sold The research department has developed a new product (E) as a replacement for product D. Market studies show that Cullumber Company could sell 11.000 units of E next year at a price of $ 115; unit variable costs of Eare $ 40. The introduction of product will lead to a 11% Increase in demand for product and discontinuation of product D. If the company does not introduce the new product It expects next year's results to be the same as last year's Compute company proht with products C&D and with products C&E Net profit with products C&D $ Net proht with products C.G.E Should callumber Company introduce product next year

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