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Ivanhoe Company operates a small factory in which it manufactures two products: A and 8 . Production and sales results for this year Were as
Ivanhoe Company operates a small factory in which it manufactures two products: A and 8 . Production and sales results for this year Were as follows; For purposes of simplicity, the firm averages total fwed costs over the total number of units of A and B produced and sold. Company could sell 10,950 units of C next vear at a price of $123; the variable costs per unit of C are $45. The introduction of product C will lead to a 10 s increase in demand for product A and discoritiruation of product B. If the consary does not introduce the new product, it expects next year's results to be the same as this year' \& Determine whether fuanhoe Corapany should introduce product C next year. Why or why not? Company profit with Products A and B: Company profit with Products A and C
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