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in which it manufactures two products: A and B. Production and sales results for this year Units sold 8.700 19.100 Selling price perunit 1596 Variable

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in which it manufactures two products: A and B. Production and sales results for this year Units sold 8.700 19.100 Selling price perunit 1596 Variable costs per unit Fixed costs per unit 21 21 For purposes of simplicity, the firm averages 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 Ivanhoe Company could sell 10,950 units of C next year at a price of $ 123: the variable costs per unit of Care $45. The introduction of product "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 results to be the same as this year's Determine whether Ivanhoe Company should introduce product ( next year. Why or why not? Company profit with Products A and B Total Variable costs Fixed costs Sales revenue Net Income [lose) Units sold Contribudon margin Company profit with Products A and O Total

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