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Can I please get help parts a, b, and c of this question: Wildhorse Company operates a small factory in which it manufactures two products:
Can I please get help parts a, b, and c of this question:
Wildhorse Company operates a small factory in which it manufactures two products: A and B. Production and sales result for last year were as follow: A B Units sold 10,300 20,600 Selling price per unit 65 52 Unit variable cost 35 30 Unit xed cost 15 15 For purposes of simplicity, the rm allocates total xed costs over the total number of units of A and B produced and sold. The research department has developed a new product (C) as a replacement for product B. Market studies show that Wildhorse Company could sell 15,600 units of C next year at a unit selling price of $80. The unit variable cost of C is $39. 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 result to be the same as last year's. a) Calculate the net profit before the introduction of Product C b) Net profit c) Should Wildhorse Company introduce product CStep by Step Solution
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