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HTC is a smartphone manufacturer Presently HTC sells a full phone line, but for the sake of illustration, we will use the following. HTC is

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HTC is a smartphone manufacturer Presently HTC sells a full phone line, but for the sake of illustration, we will use the following. HTC is considering adding a budget phone to its offering. The new product, the HTC Desire, is a value or budget positioned phone. The marketing group has the following data: Variable Unit Product Price Cost Demand HTC U19 $300 $125 100.000 HTC U11 $190 $100 200.000 HTC Desire $90 $ 50 50.000 While the HTC Desire is positioned as a budget option, the phone may also cannibalize sales of the HTC U11 and U19 models. Marketing estimates that 20% of the forecasted HTC Desire demand will come directly trom sales of HTC U11, and that 10% of the forecasted HTC Desire demand will come directly from sales of HTC U19. The additional fixed cost associated with adding HTC Desire is $1,000,000 Should HTC add the HTC Desire? Show all of your work and then justify in terms of incremental contribution why HTC Desire should or should not be added. If the project goes forward, what is the final proht or loss expected

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