Can someone tell me how to solve this and how you come up with your decision?

2) Your company is considering adding a new model to its existing product line. Currently, you sell two models, Good and Best. You are considering adding a new model-Better to the product line. You have the following data: Model Good Best Better Selling Price $3500 $6700 $5300 Variable Cost $2700 $4700 $3700 Demand last year 7000 units 3750 units New this year You have asked the sales department for a forecast for the upcoming year and they have suggested that if the new model is introduced, sales for the Better model would be expected to be about 5000 units. This would include some cannibalization from the other two models, but they are not sure how much. All they would commit to was that they would estimate a decrease in sales for the Good model somewhere between 8% and 9%. For the Best model, they estimate the decrease caused by adding the Better model to be somewhere between 5% and 10%. In addition, manufacturing suggests the company will incur an additional $2,000,000 in fixed costs to adapt the current production line to the new model. Finally, your Research & Development department has told you that they spent $2.000.000 on product development for the Best model, and that 50% of that technology can be incorporated into the better Model. Should you add the Better model? Why or why not? Sink