Carla Vista 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		7,680			15,360
Selling price per unit		65			52
Unit variable cost		35			30
Unit fixed cost		15			15

For purposes of simplicity, the firm allocates total fixed 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 Carla Vista Company could sell 10,360 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.

Net Profit before the introduction of C=

Net Profit after the introduction of C =

Should Carla Vista Company Introduce product C ?